Ex-China CRC offers have moved sideways over the past week, while the tradable level has improved amid the rising trends seen in the local market and in HRC futures prices. Gains have been limited by lower growth than expected in the local market.
At present, export offers for CRC given by major Chinese mills are at $840-850/mt FOB for August shipment, remaining stable compared to June 1.
The tradable level of ex-China CRC is at $830/mt FOB, up by $20/mt on average from last week.
“The improved sentiments in the local market due to the resumption of production have bolstered CRC prices, while the rainy weather in southern China and the expected rainy season in eastern China may negatively affect the CRC market in the near future,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have edged up amid increasing HRC futures prices and tight supplies in the spot market. Following the lifting of the lockdown in Shanghai, market players are optimistic towards the prospects for the future market. It is expected that CRC prices in the Chinese domestic market will rise further in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,340/mt ($802/mt) ex-warehouse, moving up by RMB 27/mt ($4.1/mt) compared to June 1, according to SteelOrbis’ information.
As of June 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,868/mt ($731/mt), rising by RMB 52/mt ($7.8/mt) or 1.1 percent since June 1.
$1 = RMB 6.6634
