Ex-China offer prices of cold rolled coil (CRC) have eyed big declines amid the downtrend in local prices, HRC futures and prevailing cautious sentiments among market players.
At present, export offers for CRC given by major Chinese mills are at $1,040-1,060/mt FOB for July shipment, while buyers need bear the potential risks of any adjustment in export tax rebate. The average offer prices have fallen by $60/mt on average compared to May 12. Some traders have been able to offer prices below $1,000/mt FOB for CRC for position cargoes with the tradable level heard as low as $970/mt FOB.
“The declining ferrous metal futures prices exerted a negative impact on ex-China CRC offer prices, while most mills suspended giving export offer prices amid the possible adjustments in export tax rebate,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have indicated sharp declines amid the significant decreases in HRC futures prices. Meanwhile, downstream users have been cautious towards concluding purchases for CRC at the current stage. It is thought that CRC prices may edge down further in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,703/mt ($1,103/mt) ex-warehouse, moving down by RMB 380/mt ($59/mt) compared to May 12, according to SteelOrbis’ information.
As of May 19, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,678/mt ($884/mt), decreasing by RMB 1,005/mt ($156.4/mt) or 15.0 percent since May 12.
$1 = RMB 6.4255
