Ex-China cold rolled coil (CRC) prices have moved up slightly this week given the recovery in HRC futures prices in China, even though local CRC prices have failed to increase so far due to slow demand.
At present, export offers for CRC from China are in a range of around $535-555/mt FOB, for June shipment, increasing by $5-10/mt week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $535-540/mt FOB, versus the range of $525-530/mt FOB recorded last week.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range. On May 12, the US and China announced a 90-day pause on "reciprocal" tariffs starting from May 14, which will lead to the US tariffs on Chinese imports retreating from 145 percent to 30 percent, while Chinese tariffs on US imports will fall from 125 percent to 10 percent, bolstering market sentiments firmly and resulting in better transaction activities. However, inventories of CRC have increased slightly in the given week, while demand from downstream users is not likely to improve significantly in the short term.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,583/mt ($497/mt) ex-warehouse, decreasing by RMB 17/mt ($2.4/mt) compared to May 7, according to SteelOrbis’ information.
As of May 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,267/mt ($454/mt), increasing by RMB 50/mt ($7/mt) or 1.55 percent since May 7, while up 1.27 percent compared to the previous trading day, May 13.
$1 = RMB 7.1956