Ex-China cold rolled coil (CRC) prices have edged up slightly over the past week given the rebound in local CRC offers and HRC futures prices in China.
At present, export offers for CRC given by major Chinese mills are at around $535-540/mt FOB, for November shipment, edging up by $5/mt on the lower end of the range week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $510-515/mt FOB, the same as last week.
During the given week, CRC prices in the Chinese domestic market have seen rises amid increasing HRC futures prices following the People’s Bank of China’s announcement that the reserve requirement ratio (RRR) for Chinese banks will be cut by 0.5 percentage points in the near future. Market sentiments have been bolstered, which will exert a positive impact on CRC prices. Meanwhile, since the National Day holiday (October 1-7) is approaching, downstream users may build up some stocks of CRC, which would also positively affect prices. It is thought that CRC prices in the Chinese domestic market will edge up in the coming period.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,447/mt ($491/mt) ex-warehouse, increasing by RMB 74/mt ($10.5/mt) compared to September 18, according to SteelOrbis’ information.
As of September 25, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,306/mt ($471/mt), increasing by RMB 110/mt ($16/mt) or 3.4 percent since September 18, while up 2.19 percent compared to the previous trading day, September 24.
$1 = RMB 7.0202
