Ex-China CRC prices have moved down over the past week as steelmakers and traders have tried to stimulate export activities. Nevertheless, in the local market prices have not indicated any reduction, while, moreover, futures prices have risen sharply, and so CRC export prices are expected to be supported from any big further drops in the near future, even despite the expected weak demand in Asia.
At present, export offers for CRC given by major Chinese mills are at $1,040-1,060/mt FOB for November shipment, with the average prices $30/mt lower compared to September 1. “In order to attract orders from overseas markets, Chinese steelmakers and traders have to cut prices, though in the future the prices will gain support from the expected lower production,” an international trader told SteelOrbis. Though offers have dropped, bids in the international market from a number of customers in Asia and the Middle east have remained lower - at $1,000-1,010/mt FOB maximum.
During the given week, local CRC prices have indicated slight rises amid increasing HRC futures prices and improved sentiments among market players. However, downstream users have been reluctant to conclude purchases at the high levels of prices. It is expected that CRC prices may fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,453/mt ($998/mt) ex-warehouse, moving up by RMB 33/mt ($5.1/mt) compared to September 1, according to SteelOrbis’ information.
As of September 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,776/mt ($893/mt), increasing by RMB 284/mt ($44/mt) or 5.2 percent since September 1.
$1 = RMB 6.4674
