Ex-China cold rolled coil (CRC) prices have edged up slightly over the past week following a modest increase in HRC futures prices, while local CRC offers have failed to recover so far.
More specifically, ex-China CRC offer prices from mills are at $545-570/mt FOB this week, rising by $5/mt on the higher end week on week, while the tradable levels for ex-China CRC have been heard at $545-565/mt FOB, increasing by $5/mt on the higher end week on week.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the slight rises seen in HRC futures prices. Major Chinese steelmaker Baosteel has issued its ex-works prices for delivery in May, announcing stable CRC prices, thereby bolstering market sentiments to a certain degree.
Downstream sectors such as automotive and home appliances are seeing moderate order activity, with processing enterprises mostly maintaining procurement as needed and unwilling to build up stocks, which has exerted a negative impact on the CRC market. Inventories of CRC have indicated rises, weakening the support for prices. At the same time, there are sufficient CRC supplies arriving in the market, which may result in downward pressure on prices. However, market players still expect to see a demand improvement during the remainder of April, which is traditionally another month of the peak season for business, which would positively affect CRC prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,580/mt ($522/mt) ex-warehouse, decreasing by RMB 10/mt ($1.4/mt) week on week, according to SteelOrbis’ information.
As of April 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,326/mt ($485/mt), increasing by 1.22 percent compared to the previous trading day, April 15.
$1 = RMB 6.8582
