Following several weeks of continuous declines in ex-China cold rolled coil (CRC) prices, this week export offers from Chinese suppliers have finally stabilized amid slightly increasing HRC futures prices and local CRC prices.
At present, export offers for CRC given by major Chinese mills are at around $600-610/mt FOB, for August shipment, moving sideways on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $590-595/mt FOB, remaining stable on average compared to last week.
During the given week, CRC prices in the Chinese domestic market have seen slight rises amid the increasing HRC futures prices. Market sentiments improved to a certain degree. Traders stated that they have been willing to build up stock at the current stage amid the reasonable price gap between buy and sell. The supply of CRC has decreased, easing the pressure on the spot market to a certain degree. However, the demand for CRC will remain slack in June. It is expected that CRC prices in the Chinese domestic market will likely edge down in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,950/mt ($555/mt) ex-warehouse, increasing by RMB 20/mt ($2.8/mt) compared to June 12, according to SteelOrbis’ information.
As of June 19, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,786/mt ($532/mt), increasing by RMB 12/mt ($1/mt) or 0.3 percent since June 12, while down 0.55 percent compared to the previous trading day, June 18.
$1 = RMB 7.1159
