Ex-China cold rolled coil (CRC) prices have edged up slightly over the past week amid increasing HRC futures prices, while sentiments among market players have improved.
More specifically, ex-China CRC offer prices from mills have been at $550-565/mt FOB this week, increasing by $5/mt week on week, while the tradable levels for ex-China CRC have been heard at 545-555/mt FOB, compared to $540-545/mt FOB last week.
Besides, according to sources, offers for ex-China CRC in the Middle East have settled at $585-600/mt CFR, up by $5-15/mt week on week.
During the given week, HRC futures prices have continued their uptrend, positively affecting CRC prices in the spot market. CRC producers’ capacity utilization rates have seen slight declines, resulting in declining inventories and bolstering market sentiments. At the same time, demand for CRC from downstream users has improved, exerting a positive impact on prices. Moreover, the stock replenishments ahead of the National Day holiday (October 1-8) will provide support for CRC prices. It is thought that CRC prices in the Chinese domestic market will edge up slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,553/mt ($500/mt) ex-warehouse, increasing by RMB 16/mt ($2/mt) week on week, according to SteelOrbis’ information.
As of September 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,390/mt ($477.5/mt), increasing by RMB 48/mt ($6.5/mt) or 1.4 percent since September 10, while declining by 0.38 percent compared to the previous trading day, September 16.
$1 = RMB 7.1013