Ex-China CRC prices have edged down over the past week as suppliers have been aiming to push volumes overseas. But a further decline is very doubtful, according to most sources, taking into account the rises in costs which, moreover, could trigger some rebound in the near future.
At present, export offers for CRC given by major Chinese mills are at $850-880/mt FOB for January shipment, with the average prices moving down by $15/mt compared to November 17. At the same time, some deals to South America and Southeast Asia have been reported at $840-850/mt FOB, while last week the lowest level offered by smaller sellers was $850/mt FOB.
“Since ferrous metal futures prices and iron ore prices have seen rebounding trends, market players thought ex-China CRC prices could hit bottom levels and could see an increasing trend in the near future,” an international trader told SteelOrbis.
During the given week, local Chinese CRC prices have indicated a declining trend amid slack demand. However, HRC futures prices have indicated a rebounding trend in recent trading days, which will exert a positive impact on CRC prices. 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 5,390/mt ($843.5/mt) ex-warehouse, moving down by RMB 63/mt ($9.9/mt) compared to November 17, according to SteelOrbis’ information.
As of November 24, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,599/mt ($720/mt), increasing by RMB 149/mt ($23.3/mt) or 3.35 percent since November 17.
$1 = RMB 6.3903
