Ex-China CRC offer prices have edged up slightly over the past week as suppliers have been hoping for a better market in September. However, real demand in both export and local markets is still limited, which has continued to put pressure on tradable levels.
At present, export offers for CRC given by major Chinese mills are at $660/mt FOB for November shipment, edging up by $10/mt compared to August 31. Though some mills can give prices with $10/mt discounts, these offers have been still too high for customers.
The tradable level of ex-China CRC offer prices has been at $630-635/mt FOB, down by $5/mt week on week with a few small deals done at the lower end of the range last week.
“Market players thought the demand in September would be better, bolstering their offer prices, though uncertainties still existed,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have softened amid the fluctuating trend of HRC futures prices. Currently, demand for CRC has not seen significant improvements amid repeated outbreaks of the Covid-19 pandemic. Meanwhile, approaching the Mid-Autumn Festival and National Day holidays, though the demand has improved compared to August, it is still weaker than the same period last year. It is expected that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,370/mt ($635/mt) ex-warehouse, edging down by RMB 6/mt ($0.9/mt) compared to August 31, according to SteelOrbis’ information.
As of September 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,761/mt ($545/mt), up by RMB 34/mt ($5/mt) compared to September 1.
$1 = RMB 6.916