Ex-China cold rolled coil (CRC) prices have seen slight declines over the past week even though local CRC prices have edged up slightly in the given period.
More specifically, ex-China CRC offer prices from mills have been at $535-555/mt FOB this week, declining by $5/mt on average week on week, while the tradable levels for ex-China CRC have been heard at 530-545/mt FOB, down $5/mt compared to the prices recorded last week.
During the given period, HRC futures prices have indicated an upward trend, exerting a positive impact on CRC prices. Market sentiments have improved slightly, bolstering CRC prices. Inventories of CRC have been consumed gradually, positively affecting prices. Coke prices will likely edge up in the near future, which will provide support for CRC prices from the cost side. Moreover, the cold rolled production line No. 2 of Liaoning Province-based major Chinese steelmaker Anshan Iron and Steel has been undergoing maintenance works, while it will resume production on December 10, which will reduce the supply of CRC to the market. It is expected that CRC prices in the Chinese domestic market will rebound in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,533/mt ($498/mt) ex-warehouse, increasing by RMB 20/mt ($2.8/mt) week on week, according to SteelOrbis’ information.
As of October 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,256/mt ($459/mt), increasing by RMB 37/mt ($5.2/mt) or 1.1 percent since October 16, while up 0.65 percent compared to the previous trading day, October 22.
$1 = RMB 7.0918
