Ex-China cold rolled coil (CRC) prices have edged down slightly over the past week amid decreasing local CRC prices. However, sentiments among Chinese CRC exporters are mixed, since while the mood among several suppliers has slightly improved amid given the recovery of HRC futures prices, others have been less optimistic due to weaker domestic CRC prices and the lack of signs of a demand recovery so far.
At present, export offers for CRC given by major Chinese mills are at around $530-545/mt FOB, for November shipment, edging down by $10/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, versus $510-520/mt recorded last week.
During the given week, CRC prices have moved down amid the prevailing bearish sentiments among market players. Oversupply exists in the CRC market, exerting a negative impact on prices. Moreover, demand has not seen any significant improvement, even in the traditional peak season of September, resulting in increasing inventory levels, which have negatively affected CRC prices. Though major Chinese steelmaker Baosteel has kept its CRC prices stable for delivery in October, other steelmakers, including Angang Steel and Bengang Steel, cut their CRC prices by RMB 200/mt ($28/mt) for delivery in October, signaling cautious sentiments as regards the future prospects for the CRC market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,327/mt ($467/mt) ex-warehouse, decreasing by RMB 73/mt ($10.3/mt) compared to September 4, according to SteelOrbis’ information.
As of September 11, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,188/mt ($466/mt), increasing by RMB 17/mt ($2.4/mt) or 0.54 percent since September 4, while up 1.0 percent compared to the previous trading day, September 10.
$1 = RMB 7.1182
