Ex-China CRC prices have moved on a downtrend over the past week due to the sharp fall in the Chinese currency. At the same time, the local market has performed better and local prices have even posted some slight increases.
At present, export offers for CRC given by major Chinese mills are at $630/mt FOB for November shipment, moving down by $10/mt compared to September 21.
The tradable level of ex-China CRC prices has been at $620/mt FOB, moving down by $7.5/mt week on week.
“The domestic market has performed better than the export market, while the continuous depreciation of the Chinese currency amid high levels of supply may continue to exert a negative impact on export offer prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have increased amid increasing HRC futures prices. Meanwhile, the rising ferrous metal futures prices stimulated downstream users to build up stocks ahead of the National Day holiday (October 1-7). It is thought that CRC prices in the Chinese domestic market will likely increase in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,396/mt ($618/mt) ex-warehouse, moving up by RMB 53/mt compared to September 21, according to SteelOrbis’ information. But the dollar equivalent of the local price has fallen by $17/mt over the past week due to the currency fluctuations.
As of September 28, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,870/mt ($544.3/mt), increasing by RMB 162/mt ($22.8/mt) or 4.37 percent since September 21.
$1 = RMB 7.1102