Ex-China cold rolled coil (CRC) prices have edged down over the past week amid the declining trends of local CRC prices and hot rolled coil (HRC) futures prices, coupled with falling local and export prices for HRC.
At present, export offers for CRC given by major Chinese mills are at around $555-570/mt FOB, for September shipment, down by $10/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $555-565/mt FOB, versus $570/mt FOB last week.
During the given week, CRC prices in the Chinese domestic market have moved on a downtrend amid decreasing HRC futures prices. Inventory of CRC has increased, exerting a negative impact on prices. Demand from downstream users has not improved yet, which will continue to negatively affect the CRC market. Moreover, typhoon Gaemi will hit coastal areas in China, which will weaken the demand for CRC in the near future. It is thought that CRC prices in the Chinese domestic market will likely edge down in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,790/mt ($532/mt) ex-warehouse, decreasing by RMB 63/mt ($8.8/mt) compared to July 17, according to SteelOrbis’ information.
As of July 24, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,573/mt ($501/mt), decreasing by RMB 95/mt ($13/mt) or 2.6 percent since July 17, while down 1.08 percent compared to the previous trading day, July 23.
$1 = RMB 7.1358
