Ex-China CRC prices have moved sideways over the past two weeks since, although the mood has improved slightly in the local CRC market, HRC futures prices have been fluctuating, affecting Chinese sellers’ prices.
At present, export offers for CRC given by major Chinese mills are at around $610-640/mt FOB, for July shipment, moving sideways since the last week of April. Meanwhile, the tradable levels for ex-China CRC have been heard at $610-620/mt FOB, remaining stable over the past two weeks.
Following the Labor Day holiday, demand from downstream users improved to a certain degree, while market sentiments have been more positive, which exerted a positive impact on CRC prices in the Chinese domestic market. However, inventory of CRC has been at relatively high levels, especially with the consumption of stocks being sluggish over the past week due to the holiday, which will negatively affect CRC prices. Coke prices have seen further rises, bolstering CRC prices from the cost side. On May 8, HRC futures prices declined by 1.63 percent compared to the previous trading day, which may weaken the support for market sentiments. It is expected that CRC prices in the Chinese domestic market will edge down slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,117/mt ($580/mt) ex-warehouse, increasing by RMB 27/mt ($3.8/mt) compared to April 24, according to SteelOrbis’ information.
As of May 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,808/mt ($536/mt), decreasing by RMB 27/mt ($3.8/mt) or 0.7 percent since April 24, while down 1.63 percent compared to the previous trading day, May 7.
$1 = RMB 7.1016
