Ex-China cold rolled coil (CRC) prices have edged down over the past week amid the prevailing cautious sentiments among market players.
At present, export offers for CRC given by major Chinese mills are at around $560-575/mt FOB, for December shipment, edging down by $5/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $555-565/mt FOB, versus the range of $565-575/mt recorded last week.
During the given week, CRC prices in the Chinese domestic market have moved down amid increasing inventories and the prevailing bearish sentiments. HRC futures prices have moved down, exerting a negative impact on CRC prices. Though on October 21 China announced the reduction of the one-year loan prime rate (LPR) to 3.1 percent, while cutting the LPR for five years or more to 3.6 percent, both down 25 basis points from the previous month, the impact on the steel market has been limited. However, environmental protection measures in northern China may positively affect market sentiments as production is expected to decline. It is thought 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 3,880/mt ($545/mt) ex-warehouse, decreasing by RMB 97/mt ($14/mt) compared to October 16, according to SteelOrbis’ information.
As of October 24, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,483/mt ($489/mt), decreasing by RMB 104/mt ($15/mt) week on week, while up 0.20 percent compared to the previous trading day, October 23.
$1 = RMB 7.1245
