Ex-China CRC prices have edged down over the past week given the continuous decrease in local CRC prices amid slow demand coupled with lower HRC futures prices. At the same time, although trade activity has been poor amid the lack of confidence among overseas buyers, some Chinese traders expect the downward trend to slow down in the short run given the expected seasonal domestic demand recovery in China.
At present, export offers for CRC given by major Chinese mills are at around $640-650/mt FOB, for May shipment, declining by $7.5/mt on average over the past week. Meanwhile, the tradable levels for ex-China CRC have been heard at $632-640/mt FOB, against $640/mt FOB last week. According to sources, bids from South American customers have been voiced at $620/mt FOB.
Meanwhile, during the given week, demand for CRC has continued to be slack, while supply has seen an increasing trend, exerting a negative impact on prices. At the same time, market players have lacked confidence as regards the future prospects for the CRC market, even though March should be a good period for the steel industry. Inventory of CRC is at relatively high levels, weakening the support for prices. Moreover, HRC futures prices have decreased, negatively affecting the CRC market. It is expected that CRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week as market players have been waiting for an improvement in demand.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,263/mt ($600/mt) ex-warehouse, decreasing by RMB 30/mt ($4.2/mt) compared to February 28, according to SteelOrbis’ information.
As of March 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,844/mt ($541.4/mt), decreasing by RMB 76/mt ($10.7/mt) or 1.94 percent since February 28, while down by 0.77 percent compared to the previous trading day, March 5.
$1 = RMB 7.1016
