Ex-China offer prices for cold rolled coil (CRC) have edged down slightly in the past week amid the downtrend in the local market, declining HRC futures prices, and uncertainties regarding anticipated adjustments in the export tax policy. To push volumes abroad, some sellers have provided bigger discounts.
At present, export offers for CRC given by major Chinese mills are at $930-950/mt FOB for August shipment, while buyers have been required to bear potential risks of any adjustment in the export tax policy. The offer price range has decreased by $10/mt on average compared to June 9. Deals have mostly been heard at around $900/mt FOB, down by $10-20/mt over the past week, though a few deals have been heard at $870-880/mt FOB to South America, which were assessed as lower than normal export prices.
“Rumors said an export tax may be imposed on CRC products, resulting in cautious sentiments among buyers in overseas markets,” an international trader told SteelOrbis.
During the given week, China’s domestic CRC prices have edged down slightly amid the declining trend in HRC futures prices. Meanwhile, bearish sentiments have prevailed among market players, resulting in their wait-and-see stance as regards the future prospects for the market. It is thought that CRC prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,140/mt ($958/mt) ex-warehouse, moving down by RMB 23/mt ($3.6/mt) compared to June 9, according to SteelOrbis’ information.
As of June 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,280/mt ($824/mt), decreasing by RMB 86/mt ($13.4/mt) or 1.6 percent since June 9.
$1 = RMB 6.4078
