Ex-China CRC prices moved down sharply over the past week, reacting to the fall in local prices over the past week. But there are doubts about whether the recent decrease may result in much higher export activity since transportation issues and the congestion at ports have not eased, while large mills are still not active in offering, as their production is still at reduced levels.
At present, export offers for CRC given by some Chinese mills and traders are at $975-985/mt FOB for January shipment, with the average prices moving down by $45/mt compared to October 20. “The declining local CRC prices and bearish sentiments have weakened ex-China CRC offer prices in the market,” an international trader told SteelOrbis.
During the given week, CRC prices in the local market tin China have declined sharply amid decreasing HRC futures prices and the cautious sentiments among market players. Downstream users are holding a wait-and-see stance as regards the future market prospects, resulting in slack demand for CRC. It is expected that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,213/mt ($972.3/mt) ex-warehouse, moving down by RMB 173/mt ($27.1/mt) compared to October 20, according to SteelOrbis’ information.
As of October 27, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,032/mt ($787.5/mt), decreasing by RMB 518/mt ($81.1/mt) or 9.3 percent since October 20.
$1 = RMB 6.3856
