Ex-China offer prices of cold rolled coil (CRC) have moved down in the past week amid declining iron ore prices, decreasing ferrous metal futures prices and falling local CRC prices.
At present, export offers for CRC given by major Chinese mills are at $820-840/mt FOB for late March shipment, moving down by $20/mt on average compared to December 23. Reference deal prices have been heard at $810/mt FOB, down $20/mt on week as well.
During the given week, CRC prices in the Chinese domestic market have declined sharply amid the significant decreases in ferrous metal futures prices. At the same time, the extremely cold weather has negatively affected activities and reduced demand for CRC. Meanwhile, inventories of CRC have been at relatively high levels as market players have been unwilling to build up stocks. It is thought that CRC prices in the Chinese domestic market will edge down further in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,700/mt ($873/mt) ex-warehouse, decreasing by RMB 373/mt ($57.1/mt) compared to December 23, according to SteelOrbis’ information.
As of December 30, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,436/mt ($679/mt), decreasing by RMB 173/mt ($26.5/mt) or 3.75 percent since December 23.
$1 = RMB 6.5325
