Ex-China CRC prices have dropped further over the past week amid the decreasing trend in the local market and in HRC futures prices, while demand has not improved in the international market.
At present, export offers for CRC given by major Chinese mills are at $860-870/mt FOB for June shipment, edging down by $15/mt compared to May 11.
The tradable level of ex-China CRC offer prices has been at $840-850/mt FOB.
“In many regions of China, the spreading Covid-19 pandemic has negatively affected the demand for CRC, while China’s stimulus policies may bolster the market to some extent in the near future,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down amid the declining trend in HRC futures prices. Meanwhile, the inventory of CRC has indicated slight rises, exerting a negative impact on prices. Market players still hold a wait-and-see stance towards the market. It is thought that CRC prices in the Chinese domestic market will likely move sideways or come down again in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,386/mt ($810/mt) ex-warehouse, moving down by RMB 64/mt ($9.5/mt) compared to May 11, according to SteelOrbis’ information.
As of May 18, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,676/mt ($694/mt), decreasing by RMB 99/mt ($15/mt) or 2.1 percent since May 11.
$1=RMB 6.7421
