Ex-China CRC prices have edged up slightly in the past week amid increasing HRC futures prices and rising raw material prices.
At present, export offers for CRC given by major Chinese mills are at around $670-690/mt FOB on average, for February shipment, edging up by $5/mt on average from the previous week. Meanwhile, the tradable level of ex-China CRC offer prices has been heard at $660-665/mt FOB, up by $10/mt compared to December 6.
During the given week, CRC prices in the Chinese domestic market have moved up amid the decreasing capacity utilization rates on the producers’ side. At the same time, prices of raw material, including coke and iron ore, have moved up, providing solid support for CRC prices from the cost side. Moreover, several major Chinese steelmakers, including Baosteel, Anshan Iron and Steel, and Benxi Iron and Steel, have raised their CRC prices by RMB 100/mt ($14/mt) for delivery in January, exerting a positive impact on prices in the spot market. However, since the weather is now a lot colder in China, market sentiments have been negatively affected, which will weaken the support for CRC prices. It is expected that CRC prices in the Chinese domestic market will likely fluctuate within a limited range or edge down slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,390/mt ($617/mt) ex-warehouse, increasing by RMB 46/mt ($6.5/mt) compared to December 6, according to SteelOrbis’ information.
As of December 13, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,058/mt ($570/mt), increasing by RMB 30/mt ($4.2/mt) or up by 0.74 percent since December 6, while down 1.89 percent compared to December 12.
$1 = RMB 7.1126
