Ex-China CRC prices have edged up slightly over the past week, though some previous deals have been reported at stable prices. Higher costs and expected stock replenishments in the local market ahead of the Chinese New Year holiday may push prices up further in the near future, but, since demand has remained slack in the international market so far, export prices have limited room to increase.
At present, export offers for CRC given by major Chinese mills are at $665/mt FOB for February shipment, up by $5/mt compared to December 28. Some mills are asking for $670/mt FOB.
The tradable level of ex-China CRC offer prices is at $640-660/mt FOB, remaining stable week on week. A deal from one of the major mills was reported at the lower end of the range to Turkey last week, though this has not been confirmed by the time of publication. In some markets, most mills are not ready to accept any price below $660/mt FOB at present.
“The number of infections has peaked in some regions of China, and so it has gradually become more normal than in the previous period, providing some support for the CRC market, and high iron ore prices have also bolstered CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the weak balance between supply and demand. Meanwhile, major Chinese steelmaker Baosteel raised its prices for CRC by RMB 100/mt ($14.4/mt), bolstering sentiments in the spot market. However, demand for CRC has remained slack, which has exerted a negative impact on prices. Though market players expected downstream users to replenish stocks for the winter ahead of the Chinese New Year holiday (January 21-27), buyers have been very cautious so far. It is expected that CRC prices in the Chinese domestic market will continue their fluctuating trend within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,460/mt ($645/mt) ex-warehouse, edging down by RMB 6/mt ($0.86/mt) compared to December 28, according to SteelOrbis’ information.
As of January 4, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,080/mt ($590/mt), rising by RMB 3/mt ($0.43/mt), edging up 0.07 since December 28.
$1 = RMB 6.9131
