Ex-China CRC prices have moved sideways compared to the previous week, though expectations for March are positive as demand in the local market is expected to increase at a faster pace, supporting prices.
At present, export offers for CRC given by major Chinese mills are at $720/mt FOB for May shipment, moving sideways compared to February 22. The tradable level of ex-China CRC offer prices has remained at $710/mt FOB, also remaining stable compared to last week.
During the given week, CRC prices in the Chinese domestic market have edged up slightly. “The rebounding trend in HRC futures prices and declining inventory levels have positively affected CRC prices,” an international trader told SteelOrbis.
Following previous declines, on March 1, HRC futures prices indicated a rebounding trend, signaling market players’ bullish sentiments towards the future prospect for the market. March is regarded as a traditional peak season for business, and so market players expect an improved performance in the near future. The coming two government sessions in Beijing may negatively affect production activities, which will bolster CRC prices. It is expected that CRC prices in the Chinese domestic market will follow an increasing trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,680/mt ($674/mt) ex-warehouse, moving up by RMB 34/mt ($4.9/mt) compared to February 22, according to SteelOrbis’ information.
As of March 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,304/mt ($620/mt), rising by RMB 21/mt ($3.0/mt) or edging up by 0.5 percent since February 22.
$1 = RMB 6.94
