Ex-China CRC prices have moved down over the past week after some sales last week. Weak local demand and falling bids have been putting pressure on CRC export prices.
At present, export offers for CRC given by major Chinese mills are at $640/mt FOB for November shipment, moving down by $20/mt compared to September 14.
The tradable level of ex-China CRC offer prices has been at $625-630/mt FOB, moving down by $10-15/mt week on week. Last week, there were deals reported to South America at $630-640/mt FOB, while some trades were done in the Asian region at $640-645/mt FOB. However, this week bids have fallen and sources believe that the tradable level needs to follow.
“Slack demand for CRC from downstream users following the Mid-Autumn Day holiday have negatively affected prices, while market players think there may be some stock replenishment in the near future as the National Day holiday (October 1-7) is approaching,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have edged down amid decreasing HRC futures prices. Meanwhile, inventories of CRC have been at a relatively high level, exerting a negative impact on prices. At the same time, demand has not seen significant improvement even in September, which has weakened market sentiment. It is expected that CRC prices in the Chinese domestic market will move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,343/mt ($635/mt) ex-warehouse, edging down by RMB 33/mt ($4.75/mt) compared to September 14, according to SteelOrbis’ information.
As of September 21, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,708/mt ($533.5/mt), decreasing by RMB 92/mt ($13.2/mt) or 2.42 percent since September 14.
$1 = RMB 6.9536
