Ex-China CRC prices have edged down over the past week amid decreasing HRC futures prices and declining CRC prices in the local market.
At present, export offers for CRC given by major Chinese mills are at $1020-1,040/mt FOB for November shipment, with the average prices $20/mt lower compared to September 8. No higher prices have been reported from some mills, which have withdrawn their prices for now. “The decreasing HRC futures prices and the declining trend in local CRC prices have negatively affected ex-China CRC offer prices,” an international trader told SteelOrbis. Although offers have been closer to the level that could be acceptable to buyers, there have been no new deals reported so far.
During the given week, local CRC prices have indicated slight declines amid decreasing HRC futures prices and the prevailing cautious sentiments among market players due to the negative influence of typhoon Chanthu. Moreover, demand has been slack due to the approach of the Mid-Autumn Day and National Day holidays. However, ahead of the long holiday, some downstream users may build up stocks, which will provide support for CRC prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,433/mt ($997/mt) ex-warehouse, moving down by RMB 20/mt ($3.1/mt) compared to September 8, according to SteelOrbis’ information.
As of September 15, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,694/mt ($883/mt), decreasing by RMB 82/mt ($12.7/mt) or 1.42 percent since September 8.
$1 = RMB 6.4492
