Ex-China CRC prices have seen further declines over the past week amid the decreasing trends of local CRC prices and HRC futures prices.
At present, export offers for CRC given by major Chinese mills are at around $550-565/mt FOB, for October shipment, declining by $5/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $550/mt FOB, decreasing by $5-15/mt compared to last week.
During the given week, CRC prices in the Chinese domestic market have seen further decreases amid declining HRC futures prices. Meanwhile, bearish sentiments have prevailed among market players, exerting a negative impact on CRC prices. Inventory of CRC has been at relatively high levels, weakening the support for prices. Traders have come under heavy pressure from tight liquidity towards the end of July. It is thought that CRC prices in the Chinese domestic market will likely edge down in the coming week due to the continuing hot weather and slack demand.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,730/mt ($523/mt) ex-warehouse, decreasing by RMB 60/mt ($8.4/mt) compared to July 24, according to SteelOrbis’ information.
As of July 31, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,479/mt ($488/mt), decreasing by RMB 94/mt ($13.2/mt) or 2.6 percent since July 24, while down 0.26 percent compared to the previous trading day, July 30.
$1 = RMB 7.1346
