Ex-China CRC prices have fallen further over the past week as demand in the local market has remained limited and the depreciation of the Chinese currency has made exports more attractive.
At present, export offers for CRC given by major Chinese mills are at $600-610/mt FOB for December shipment, down by $5/mt compared to October 19. At the same time, the tradable level of ex-China CRC prices stands at $590-600/mt FOB, declining by $10/mt week on week. Some deals to Southeast Asia have been seen at $600/mt FOB and new negotiations are at $10/mt lower, according to market sources.
“The decreasing trends of HRC futures prices and CRC prices in the local market, declining ex-China HRC offer prices, and the sluggish demand in the export market have exerted a negative impact on ex-China CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down as the controlling measures in many regions of China amid the Covid-19 pandemic have negatively affected the demand from downstream users. Meanwhile, HRC futures prices have moved on a downtrend, exerting a negative impact on market sentiment. It is thought that CRC prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,316/mt ($603/mt) ex-warehouse, moving down by RMB 50/mt ($7.0/mt) compared to October 19, according to SteelOrbis’ information.
As of October 26, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,627/mt ($506.6/mt), decreasing by RMB 38/mt ($5.3/mt) or 1.0 percent since October 19.
$1 = RMB 7.1638