Ex-China CRC prices have moved down sharply over the past week, following huge declines as high as $58/mt in the local market.
At present, export offers for CRC given by major Chinese mills are at $710/mt FOB for September shipment, moving down by $20/mt on average compared to July 6.
The tradable level of ex-China CRC offer prices has been at $690/mt FOB, down by $10-20/mt week on week.
“The prevailing bearish sentiments and the big declines in HRC futures prices and local CRC prices have negatively affected ex-China CRC offers, while major Chinese steelmakers have also cut their prices for CRC for delivery in August, weakening the support for the CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down sharply amid the prevailing cautious sentiments among market players. At the same time, inventory of CRC has been at a relatively high level, exerting a negative impact on the CRC market. It is thought that CRC prices in the Chinese domestic market will likely continue their downtrend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,400/mt ($712/mt) ex-warehouse, moving down by RMB 390/mt ($58/mt) compared to July 6, according to SteelOrbis’ information.
As of July 13, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,917/mt ($582/mt), decreasing by RMB 321/mt ($47.7/mt) or 7.6 percent since July 6.
$1 = RMB 6.7282