Ex-China CRC offer prices have moved slightly down over the past week as sentiment has been impacted by the increases in Covid cases in China again and the resulting reduction in demand. At the same time, the tradable price level has not changed much, mainly as trading has been inactive.
At present, export offers for CRC given by major Chinese mills are at $660-670/mt FOB for February shipment, down by $10/mt compared to December 14.
The tradable level of ex-China CRC offer prices has been at $650/mt FOB on average, remaining stable week on week.
“The decreases in HRC futures prices since late last week have exerted a negative impact on the CRC market, while the Covid-19 infections have also negatively affected market players’ expectations for the future CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved sideways amid the rapid spread of the Covid-19 pandemic and more and more people have been infected, which has exerted a negative impact on the supply chain in the CRC industry. As the Chinese New Year holiday is approaching, demand for CRC may remain slack, though some market participants may build up stocks ahead of the long holiday in January. Quiet transaction activities may weaken the support for the CRC market. It is expected that CRC prices in the Chinese domestic market will continue their fluctuating trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,463/mt ($641/mt) ex-warehouse, edging up by RMB 3/mt ($0.4/mt) compared to December 14, according to SteelOrbis’ information.
As of December 21, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,068/mt ($584.5/mt), decreasing by RMB 1/mt ($0.14/mt), almost remaining stablesince December 14.
$1 = RMB 6.965
