Ex-China CRC prices have moved down over the past week. However, prices have risen slightly since the start of the week following the recovery of futures prices, coupled with higher import iron ore prices, which have exerted a positive impact on market sentiments.
At present, export offers for CRC given by major Chinese mills are at around $625/mt FOB, for May shipment, moving down by $25/mt on average over the past week. Meanwhile, the tradable levels for ex-China CRC have been heard at $618-625/mt FOB, moving down by $14.5/mt compared to last week, but up by $6/mt on the lower end of the range, since Monday, March 18.
During the given week, CRC prices in the Chinese domestic market have moved down amid the prevailing cautious sentiments among market players. However, the iron and steel associations of Guangdong and Shandong provinces have urged steelmakers to halt production outputs, bolstering market sentiments. Ferrous metal futures prices have bottomed up since March 18, exerting a positive impact on CRC prices. However, inventory of CRC has been at relatively high levels, which will negatively affect prices in the near future. It is expected that CRC prices in the Chinese domestic market will likely edge up in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,110/mt ($584/mt) ex-warehouse, decreasing by RMB 37/mt ($5.2/mt) compared to March 13, according to SteelOrbis’ information.
As of March 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,791/mt ($534/mt), increasing by RMB 22/mt ($3.1/mt) or 0.6 percent since March 13, while up 0.8 percent compared to the previous trading day, March 19.
$1 = RMB 7.0968
