Ex-China CRC prices have declined over the past week as suppliers have been seeking to attract customers, who were reluctant to buy lately. This happened even despite the stable trend in the local market and the rising trend of HRC futures prices in China.
At present, export offers for CRC given by major Chinese mills are at $940-950/mt FOB for June shipment, down $5/mt compared to April 13.
The tradable level of ex-China CRC is at $930/mt FOB on average, with some lower prices also possible, according to sources.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the slightly rising output and increasing inventory levels. Due to the rapid spread of the Covid-19 pandemic and strict control measures in many regions of China, transportation has been negatively affected.
“Though the lockdown in Shanghai continues, it seemed that the number of Covid-19 cases has decreased over the past few days and market sentiment has improved to some extent, and so a better performance is expected in the CRC market in the near future,” an international trader told SteelOrbis. It is thought that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
As of April 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,223/mt ($816/mt), rising by RMB 137/mt ($21.4/mt) or 2.7 percent since April 13.
$1 = RMB 6.3996