Despite the increasing trend of local cold rolled coil (CRC) prices and hot rolled coil (HRC) futures prices in China, this week ex-China CRC prices have declined further, mainly due to slow demand in the main trade destinations.
At present, export offers for CRC given by major Chinese mills are at around $575-585/mt FOB, for August shipment, edging down by $5/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $575-580/mt FOB, against $575-590/mt FOB last week. According to sources, trade activity has remained extremely slow, with only occasional deals reported. In particular, a deal for around 5,0000 mt of ex-China CRC has been reported at $620/mt CFR UAE this week, which translates to around $580/mt FOB.
During the given week, CRC prices in the Chinese domestic market have seen some increases amid the increasing trend of iron ore prices. Inventory of CRC has been at relatively high levels as demand from downstream users has been slack due to the hot and rainy weather in many regions in China. HRC futures prices have increased over the past three trading days, exerting a positive impact on market sentiments. At the same time, the rainy weather has eased gradually in eastern China, which will positively affect the CRC market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,923/mt ($550/mt) ex-warehouse, increasing by RMB 16/mt ($2.2/mt) compared to June 26, according to SteelOrbis’ information.
As of July 3, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,809/mt ($534/mt), increasing by RMB 56/mt ($8/mt) or 1.5 percent since June 26, while up 1.2 percent compared to the previous trading day, July 2.
$1 = RMB 7.1312
