Ex-China CRC prices from mills have continued their slight decrease over the past week, given still slow demand due to Covid-19 cases in the country. Meanwhile, the tradable level has remained relatively stable as most Chinese traders have decided to maintain their offers.
At present, export offers for CRC given by major Chinese mills are at $660/mt FOB for February shipment, edging down by $5/mt compared to December 21.
The tradable level of ex-China CRC offer prices has been at $640-660/mt FOB, moving sideways week on week. “The mass infection of Covid-19 negatively affected the transportation, the production of downstream users, while the high-leveled iron ore prices provided certain support to CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the fluctuating trend in HRC futures prices. The capacity utilization rate of manufacturing industry has been at relatively low levels, resulting in slack demand for CRC. The mass infection of Covid-19 negatively affected the transportation, resulting in declining inventory level in the spot market. At the same time, iron ore prices have been at relatively high levels, bolstering CRC prices. Since the Chinese New Year holiday (January 21-27) is approaching, part of downstream users plan to halt production in advance, which will exert a negative impact on CRC market. It is expected that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,466/mt ($641/mt) ex-warehouse, edging up by RMB 3/mt ($0.4/mt) compared to December 21, according to SteelOrbis’ information.
As of December 28, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,077/mt ($585/mt), rising by RMB 9/mt ($1.3/mt), edging up 0.22 since December 21.
$1 = RMB 6.9681
