Ex-China cold rolled coil (CRC) prices have declined slightly over the past week following lower prices for local CRC and decreases in HRC futures prices.
More specifically, ex-China CRC offer prices from mills are at $540-560/mt FOB this week, decreasing by $5/mt on average week on week, while the tradable levels for ex-China CRC have been heard at 540-550/mt FOB, down $5/mt compared to the prices recorded last week.
During the given period, HRC futures prices have indicated a decreasing trend, negatively affecting market sentiments. US President Trump has announced plans to impose 100 percent tariffs on exports of goods from China as well as new export restrictions on key software, also exerting a negative impact on market sentiments. Inventory consumption has been proceeding slowly, weakening the support for CRC prices. The bullish expectations for ‘golden September’ were disappointed, while hopes for ‘silver October’ may also fail to materialize, which would negatively affect CRC prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,513/mt ($495/mt) ex-warehouse, decreasing by RMB 27/mt ($3.8/mt) week on week, according to SteelOrbis’ information.
As of October 15, HRC futures at Shanghai Futures Exchange are standing at RMB 3,212/mt ($452/mt), decreasing by RMB 145/mt ($20.4/mt) or 4.3 percent since September 24, while decreasing by 0.86 percent compared to the previous trading day, October 14.
$1 = RMB 7.0995
