Ex-China CRC prices have kept decreasing this week given the continuous declines in domestic quotes and still weak demand.
At present, export offers for CRC given by major Chinese mills are at $600-610/mt FOB for July shipment, decreasing by $35/mt compared to May 24.
The tradable level of ex-China CRC offer prices has been heard at $595/mt FOB, declining by $35/mt compared to May 24.
“Since the hot summer is approaching, demand for CRC from downstream users will be slacker, which will negatively affect CRC prices in the near future,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have indicated big declines amid the slack demand from downstream users. At the same time, production restrictions have not been strictly implemented recently. Meanwhile, bearish sentiments have prevailed among players in the CRC market. Moreover, iron ore prices have moved on a decreasing trend, weakening the support for CRC prices from the cost side. 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 4,110/mt ($580.5/mt) ex-warehouse, declining by RMB 77/mt ($10.9/mt) compared to May 24, according to SteelOrbis’ information.
As of May 31, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,581/mt ($506/mt), rising by RMB 30/mt ($4.2/mt) or up by 0.85 percent since May 24.
$1 = RMB 7.0821
