Ex-China cold rolled coil (CRC) prices have edged down slightly amid the negative impact of New Year holiday (January 1), which resulted in slack demand in the market, coupled with the declines in HRC futures prices in China.
At present, export offers for CRC from Chinese mills are in a range of around $535-560/mt FOB, for February shipment, down by $10/mt over the past two weeks. Meanwhile, the tradable levels for ex-China CRC have been heard at $535-540/mt FOB, versus the range of $535-550/mt FOB recorded two weeks ago.
During the given period, the New Year holiday exerted a negative impact on sentiments in CRC market. Besides, as the Chinese New Year holiday (January 28-February 4) is approaching, it is thought that sellers could focus on sales in the coming week, which may drag down CRC prices in the Chinese domestic market. However, the relatively low inventory levels in the CRC market may bolster prices to a certain degree. At the same time, major Chinese steelmaker Baosteel has announced stable CRC prices for delivery in February, also providing certain support for prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,870/mt ($528/mt) ex-warehouse, remaining stable compared to December 25, according to SteelOrbis’ information.
As of January 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,321/mt ($453/mt), decreasing by RMB 104/mt ($14/mt) or 3.0 percent since December 25, while down 0.98 percent compared to the previous trading day, January 7.
