Ex-China cold rolled coil (CRC) prices have edged up slightly supported by the stability in the local CRC market. Besides, according to sources, this week more and more low-priced offers for flats have been disappearing in China amid the enforcement of stricter measures against VAT-free cargoes.
At present, export offers for CRC from China are in a range of around $535-545/mt FOB, for June shipment, increasing by $2.5/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $530-535/mt FOB, versus the range of $530/mt FOB recorded last week.
During the given week, CRC prices in the Chinese domestic market have moved sideways, while the demand from downstream users has not been as good as market players had expected. Cautious sentiments have prevailed among market players. Inventory consumption has slowed down, which has negatively affected CRC prices. However, there is no production halt on the producers’ side, which may exert a negative impact on the CRC market from the supply side.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,733/mt ($518/mt) ex-warehouse, moving sideways compared to April 9, according to SteelOrbis’ information.
As of April 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,205/mt ($445/mt), decreasing by RMB 3/mt ($0.4/mt) or 0.09 percent since April 9, while down 1.05 percent compared to the previous trading day, April 15.
$1 = RMB 7.2133
