Ex-China cold rolled coil (CRC) prices have edged down slightly over the past week, impacted by weakening local demand and negative sentiments. However, lower production may lead to price stabilization in the near future.
More specifically, ex-China CRC offer prices from mills are at $560-565/mt FOB this week, down $5/mt on average week on week, while the tradable levels for ex-China CRC have been heard at $550-555/mt FOB, versus $555-560/mt last week, for shipment in late August.
During the given week, CRC prices in the Chinese domestic market have edged down slightly amid severe convective weather negatively affecting demand from downstream users. Inventories of CRC have seen slight rises, exerting a negative impact on prices. Some traders have reduced CRC prices aiming to ease tightness of liquidity, weakening the support for prices. Some CRC producers have maintenance works planned in July, which will reduce outputs and bolster prices to a certain degree. It is expected that CRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,643/mt ($535/mt) ex-warehouse, decreasing by RMB 17/mt ($2.5/mt) week on week, according to SteelOrbis’ information.
As of July 8, HRC futures at Shanghai Futures Exchange are standing at RMB 3,300/mt ($482/mt), increasing by RMB 15/mt ($2.2/mt) or 0.46 percent since July 1, while rising by 0.33 percent compared to the previous trading day, July 7.
$1 = RMB 6.8077
