Ex-China cold rolled coil (CRC) prices have remained relatively unchanged over the past week, while the market outlook has been mixed since, although a better mood has been seen in the CRC segment locally, HRC futures prices have declined once again on September 18.
At present, export offers for CRC given by major Chinese mills are at around $530-545/mt FOB, for November shipment, the same as last week. Meanwhile, the tradable levels for ex-China CRC have remained at $510-515/mt FOB.
During the given week, CRC prices in the Chinese domestic market have moved up amid increasing HRC futures prices. Some downstream users had built up certain stocks ahead of the Mid-Autumn Day holiday, exerting a positive impact on CRC prices. Market players expected that demand for CRC may improve in the near future as more purchases may be concluded ahead of the National Day holiday (October 1-7), which would bolster prices solidly. It is thought that CRC prices in the Chinese domestic market may edge up in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,373/mt ($476/mt) ex-warehouse, increasing by RMB 46/mt ($6.5/mt) compared to September 11, according to SteelOrbis’ information.
As of September 18, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,196/mt ($450/mt), increasing by RMB 8/mt ($1.1/mt) or 0.25 percent since September 11, while down 1.72 percent compared to the last trading day before the holiday on September 13.
$1 = RMB 7.087
