Although last week some positive sentiment appeared among Chinese CRC exporters, this week ex-China CRC prices have failed to recover due to another fall in HRC futures prices coupled with weaker CRC prices locally.
At present, export offers for CRC given by major Chinese mills have been heard at around $620-630/mt FOB, for May shipment, with the midpoint at $625/mt FOB, the same as last week. However, the tradable levels for ex-China CRC have been voiced at around $610-620/mt FOB, against $618-625 FOB last week.
During the given week, CRC prices in the Chinese domestic market have edged down amid the decreases in HRC futures prices since March 25, though futures prices have indicated a rebounding trend over the past week. Inventory of CRC has decreased slightly compared to last week, though remaining at a relatively high level, exerting a negative impact on prices. Demand for CRC has slackened again following the improvement recorded last week, and buyers have declined to conclude purchases given the falling price trend. Cautious sentiments have prevailed among market players.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,087/mt ($584/mt) ex-warehouse, decreasing by RMB 23/mt ($3.2/mt) compared to March 20, according to SteelOrbis’ information.
As of March 27, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,717/mt ($523.5/mt), decreasing by RMB 74/mt ($10.4/mt) or 1.95 percent since March 20, while down 1.72 percent compared to the previous trading day, March 26.
$1 = RMB 7.0946
