Ex-China CRC prices have edged up compared to the pre-holiday period, but the pace of growth has been conservative as demand has not picked up yet.
At present, the most competitive export offers for CRC given by Chinese mills are at $710/mt FOB for April shipment, edging up by $10/mt compared to January 18. Though some mills are asking for $720/mt FOB or even above, these levels have been mainly nominal for now.
The tradable level of ex-China CRC offer prices has been heard at $700/mt FOB, also up by $10/mt compared to January 18.
“The relatively high import iron ore prices have bolstered CRC prices from the cost side, while the prevailing bullish sentiments have positively affected the market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have increased amid the prevailing bullish sentiments among market players. Currently, some traders are back in the market, while the full resumption of activity is expected to be seen after the Lantern Festival (February 5), and so the rises in CRC prices have mainly due to positive sentiment. It is thought that CRC prices in the Chinese domestic market will continue to edge up in the coming week as demand will recover when market players are back in the market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,577/mt ($678/mt) ex-warehouse, edging up by RMB 54/mt ($8.0/mt) compared to January 18, according to SteelOrbis’ information.
As of February 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,092/mt ($606/mt), decreasing by RMB 83/mt ($12.3/mt) or edging down by 2.0 percent since January 18.
$1 = RMB 6.7492