Ex-China CRC prices have remained stable over the past week, as most suppliers have been trying to avoid discounts even though HRC futures prices and local CRC prices have decreased.
At present, export offers for CRC given by major Chinese mills are at around $615-625/mt FOB, for July shipment, moving sideways on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $605-610/mt FOB, remaining stable on average compared to last week. According to sources, ex-China CRC offers to the Middle East, the UAE in particular, are at $630-640/mt CFR, the same as last week, though no major deals have been reported given the slow demand in the region.
During the given week, CRC prices in the Chinese domestic market have declined amid the continuous decreases in HRC futures prices. Though China has issued several stimulus policies for the real estate sector, and two major first-tier cities, Shanghai and Shenzhen, have lifted restriction policies on housing purchases, market players are cautious as regards the future prospects for the market. Meanwhile, inventory of CRC has been at relatively high levels, reflecting the slack demand from downstream users. It is expected that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,080/mt ($574/mt) ex-warehouse, decreasing by RMB 47/mt ($6.6/mt) compared to May 22, according to SteelOrbis’ information.
As of May 29, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,879/mt ($531.5/mt), decreasing by RMB 31/mt ($4.4/mt) or 0.8 percent since May 22, while down 0.21 percent compared to the previous trading day, May 28.
$1 = RMB 7.1106
