Ex-China cold rolled coil (CRC) prices have moved down over the past week amid the decreasing trends in hot rolled coil (HRC) futures prices and local CRC prices.
At present, export offers for CRC given by major Chinese mills are at around $540-545/mt FOB, for October shipment, decreasing by $15/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $530-535/mt FOB, decreasing by $22.5/mt on average compared to last week.
During the given week, CRC prices in the Chinese domestic market have decreased amid declining HRC futures prices. At the same time, demand for CRC has remained slack, exerting a negative impact on prices. Moreover, inventory of CRC has been at relatively high levels, weakening the support for prices. Traders have chosen to sell at lower prices, aiming to stimulate transaction activities. It is expected that CRC prices in the Chinese domestic market will likely edge down further in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,560/mt ($499/mt) ex-warehouse, decreasing by RMB 67/mt ($9.4/mt) compared to August 7, according to SteelOrbis’ information.
As of August 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,246/mt ($455/mt), decreasing by RMB 235/mt ($33/mt) or 6.75 percent since August 7, while down 3.31 percent compared to the previous trading day, August 13.
$1 = RMB 7.1415
