Ex-China cold rolled coil (CRC) prices have edged down over the past week following declines in local CRC prices and worse sentiment in the HRC futures market in China.
More specifically, ex-China CRC offer prices from mills have been at $530-550/mt FOB this week, edging down by $5/mt on average week on week, while the tradable levels for ex-China CRC have been heard at 520-530/mt FOB, versus $535-545/mt FOB last week.
During the given period, HRC futures prices have moved down, exerting a negative impact on the CRC market. Supply of CRC has been at a relatively high level, while demand from downstream users has been sluggish in November, resulting in accumulating inventories, which have negatively affected prices. The fourth quarter is regarded as the traditional offseason for the steel industry as construction sites in northern China have gradually halted activities, which will negatively affect downstream users’ purchasing activities. Steel mills and traders lack confidence as regards the future prospects for the CRC market and so stock replenishments for the winter period may be reduced.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,520/mt ($496/mt) ex-warehouse, decreasing by RMB 30/mt ($4.2/mt) week on week, according to SteelOrbis’ information.
As of November 5, HRC futures at Shanghai Futures Exchange are standing at RMB 3,253/mt ($457/mt), decreasing by RMB 92/mt ($13/mt) or 2.75 percent since October 29, while decreasing by 0.85 percent compared to the previous trading day, November 4.
$1 = RMB 7.0901
