Ex-China cold rolled coil (CRC) prices have seen slight increases amid the continuous hikes in HRC futures prices in China ahead of the long Chinese New Year holiday. However, according to market insiders, trade activity in the export segment has remained slow due to the lack of signs of a demand recovery globally.
At present, export offers for CRC from China are in a range of around $550-560/mt FOB, for February shipment, versus $535-560/mt FOB last week. Meanwhile, the tradable levels for ex-China CRC have been heard at $540-550/mt FOB, versus the range of $535-540/mt FOB recorded last week.
During the given week, downstream users have been gradually leaving the market for the holiday, resulting in increases in inventory levels. HRC futures prices have moved up, exerting a positive impact on CRC prices. Some sellers have chosen to sell at lower prices in the spot market, aiming to stimulate transaction activities, while buyers have been cautious in concluding purchases. Since there are just a few days left before the Chinese New Year holiday (January 28-February 4), market players think that CRC prices in the Chinese domestic market will remain stable in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,853/mt ($537/mt) ex-warehouse, moving down by RMB 17/mt ($2.4/mt) compared to January 15, according to SteelOrbis’ information.
As of January 22, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,450/mt ($481/mt), increasing by RMB 33/mt ($4.6/mt) or 1.0 percent since January 15, while down 0.72 percent compared to the previous trading day, January 21.
$1 = RMB 7.1696