In the past week, cold rolled coil (CRC) prices in the Chinese market declined at an increased rate. At present, the average CRC prices in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
1.0 mm x 1,250 mm x C |
SPCC |
5,297 |
-66 |
832 |
-10 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,360 |
-73 |
841 |
-11 |
As of October 19, the prices of ST12 1.0 mm x 1,250 mm x C CRC in Shanghai, Tianjin and Lecong are respectively RMB 5,400/mt ($848mt), RMB 5,160/mt ($810/mt) and RMB 5,330/mt ($837/mt). For ST12 1.0 mm x 1,250 mm x 2,500 mm cold rolled sheet (CRS), prices stand at RMB 5,420/mt ($851/mt), RMB 5,180/mt ($813/mt) and RMB 5,480/mt ($860/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.37).
In the Chinese CRC market, major domestic mills WISCO, Anshan Steel and Benxi Steel have cut their prices for November by RMB 100-400/mt ($15-62/mt). Some mills are giving discounts depending on transaction volumes, and this has increased the pessimism in the market. Industry insiders state that current Chinese CRC prices have already fallen by RMB 400/mt ($63/mt) compared with the highest level this year. However, end-users are generally still not inclined to conclude bookings. Meanwhile, traders are not replenishing their stocks due to tight capital and low expectations for the future market, and so the Chinese CRC market has continued to soften. In addition, the main Chinese mills are feeling pressure from their costs and so are likely to shift their increased inventory to the market, with inventory in the domestic CRC market thus expected to rise.
Currently, the Chinese CRC market is in a difficulty situation. CRC market traders are under pressure and are adopting a wait-and-see stance, demand from end-users is still low, while inventory is continuing to increase. It is expected that the Chinese CRC market will remain on a downtrend in the coming week.