Ex-China offer prices of cold rolled coil (CRC) have edged down in the past week amid the declining trend of local CRC prices.
At present, export offers for CRC given by major Chinese mills are at $790-810/mt FOB for late March shipment, moving down by $30/mt on average compared to December 30. Reference deal prices have been heard at $760-780/mt FOB, down $40/mt compared to the previous week. However, the recent increase in HRC futures prices may provide some support for prices while moreover, CRC prices for foreign customers are unlikely to fall much further due to high costs.
During the given week, CRC prices have declined sharply amid sluggish demand from downstream users. However, relatively low inventory levels have bolstered CRC prices to some extent. It is thought that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,636/mt ($872/mt) ex-warehouse, decreasing by RMB 64/mt ($9.9/mt) compared to December 30, according to SteelOrbis’ information.
As of January 6, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,518/mt ($699.4/mt), increasing by RMB 82/mt ($12.7/mt) or 1.85 percent since December 30.
$1 = RMB 6.4604
