Ex-China CRC prices have moved down over the past week amid the decreasing trends in the local market and HRC futures prices, while demand has been poor locally and abroad. Some better sentiments seen in the market last week have now completely disappeared.
At present, export offers for CRC given by major Chinese mills are at $810-815/mt FOB for August shipment, moving down by $32.5/mt compared to June 8.
The tradable level of ex-China CRC offer prices is at $800-810/mt FOB, down from $830/mt FOB last week.
“Bearish sentiments have prevailed among players in the local market due to the rainy season in eastern and southern China, while the declining iron ore prices have also negatively affected the CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down amid the declining trend seen in HRC prices in the local market and the futures market. At the same time, iron ore prices have moved down, weakening the support for CRC prices. Moreover, demand for CRC has been slack amid the rainy season in eastern and southern China.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,263/mt ($780/mt) ex-warehouse, moving down by RMB 77/mt ($11.4/mt) compared to June 8, according to SteelOrbis’ information.
As of June 15, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,653/mt ($689/mt), decreasing by RMB 215/mt ($31.9/mt) or 4.4 percent since June 8.
$1 = RMB 6.7518
