Ex-China cold rolled coil (CRC) prices have moved on an uptrend over the past week given the significant increase in hot rolled coil (HRC) futures prices in China.
At present, export offers for CRC from China are in a range of around $535-545/mt FOB, for September shipment, versus $515-520/mt FOB last week. Meanwhile, the tradable levels for ex-China CRC have been heard at $530-535/mt FOB, up by $20/mt week on week.
During the given week, the average CRC prices in the Chinese domestic market have moved up further amid the improving sentiments as several government departments in China have stressed the need to curb excessive competition in the steel industry. Speculative sentiment among traders has been heating up, exerting a positive impact on the CRC market. Some market players have suspended trading activities as the daily trading volume has exceeded the normal level, aiming to avoid potential risks due to the anticipated increases in prices. It is expected that CRC prices in the Chinese domestic market will continue to edge up in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,583/mt ($502/mt) ex-warehouse, increasing by RMB 170/mt ($24/mt) compared to July 16, according to SteelOrbis’ information.
As of July 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,438/mt ($481.5/mt), increasing by RMB 185/mt ($26/mt) since July 16, while increasing by 0.2 percent compared to the previous trading day, July 22.
$1 = RMB 7.1414
