Ex-China offer prices of cold rolled coil (CRC) have edged down over the past week, but market sources believe the market has hit bottom levels amid increasing HRC futures prices and the rising trend of local CRC prices.
At present, export offers for CRC given by major Chinese mills are at $910-940/mt FOB for September shipment, down $10/mt from June 30.
“The possible cancellation of the export tax rebate has made most Chinese CRC exporters suspend giving offer prices, while buyers in overseas markets have been reluctant to conclude purchases,” an international trader told SteelOrbis. The tradable level is said to be around $870-900/mt FOB, according to market sources.
During the given week, domestic CRC prices in China have indicated big rises amid increasing HRC futures prices. Bullish sentiments have prevailed among market players. However, slack demand in the traditional offseason still negatively affects the CRC market. It is thought that CRC prices may edge up slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,116/mt ($944/mt) ex-warehouse, moving up by RMB 83/mt ($12.8/mt) compared to June 30, according to SteelOrbis’ information.
As of July 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,768/mt ($891/mt), increasing by RMB 340/mt ($52.5/mt) or 6.3 percent since June 30.
$1 = RMB 6.4762
