Ex-China offer prices of cold rolled coil (CRC) have indicated some rises amid the uptrend in the local market, rising HRC futures prices in China and improved sentiments among market players.
At present, export offers for CRC given by major Chinese mills are at $960-980/mt FOB for July shipment, while buyers need to accept potential risks of any adjustment in the export tax rebate, with the average offer prices increasing by $20/mt compared to May 26. “HRC futures prices have bottomed up, positively affecting ex-China CRC offer prices,” one international trader told SteelOrbis. The tradable price level for ex-China CRC has increased from as low as $890/mt FOB last week to $920-930/mt FOB minimum.
During the given week, domestic CRC prices in China have indicated big rises amid increasing HRC futures prices. However, downstream users have mostly held a wait-and-see stance towards concluding purchases due to the rapid changes seen in prices. Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,246/mt ($943/mt) ex-warehouse, moving up by RMB 200/mt ($31.4/mt) compared to May 26, according to SteelOrbis’ information.
As of June 2, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,305/mt ($832/mt), rising by RMB 288/mt ($45.2/mt) or 5.74 percent since May 26.
$1 = RMB 6.3773
