Ex-China offer prices of cold rolled coil (CRC) have edged up further amid the rising local CRC prices due to the expectations of production restrictions.
At present, export offers for CRC given by major Chinese mills are at $970-1,000/mt FOB for September shipment amid the increasing local CRC prices, with the average offer prices $50/mt higher than that recorded on July 14. Some steelmakers have suspended giving offer prices. The tradable price level has increased to $950/mt FOB.
“Hot weather and heavy rains negatively affected demand for CRC in the local market, while steelmakers’ worries about the possible export tax made them suspend giving ex-China CRC offer prices,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have seen slight rises amid the fluctuating trend in HRC futures prices. Market players have mostly held a wait-and-see stance towards prospect for the future market. The demand for CRC has remained slack, which resulted in low transaction activities. It is thought that CRC prices in the Chinese domestic market will move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,406/mt ($988mt) ex-warehouse, moving up by RMB10/mt ($1.5/mt) compared to July 14, according to SteelOrbis’ information.
As of July 21, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,918/mt ($913/mt), decreasing by RMB 81/mt ($12.5/mt) or 1.35 percent since July 14.
$1 = RMB 6.4835
