Ex-China cold rolled coil (CRC) prices have edged down over the past week following weaker prices for hot rolled coils (HRC) and the ongoing slow demand for Chinese CRC in the main trade destinations, even though local prices for CRC have moved up slightly amid the recovery seen in HRC futures prices this week.
At present, export offers for CRC given by major Chinese mills are at around $545-555/mt FOB, for January shipment, edging down by $5/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $545-550/mt FOB, versus the range of $550-555/mt recorded last week.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the prevailing cautious sentiments among market players. Demand from downstream users has slackened due to the lack of confidence as regards the future prospects for the CRC market. Traders have cut their CRC prices to stimulate transaction activities.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,857/mt ($536/mt) ex-warehouse, edging up by RMB 7/mt ($1/mt) compared to November 13, according to SteelOrbis’ information.
As of November 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,489/mt ($485/mt), decreasing by RMB 24/mt ($3.3/mt) or 0.7 percent since November 13, while up 0.4 percent compared to the previous trading day, November 19.
$1 = RMB 7.1935
