Despite the increasing trend of HRC futures prices and the rebound of iron ore prices this week, ex-China CRC prices have edged down since domestic and overseas demand is still slow. However, according to sources, the trend is likely to be reversed in the short run if more support is seen from local CRC prices and HRC futures prices.
At present, export offers for CRC given by major Chinese mills are at around $630/mt FOB on average, for December shipment, edging down by $5/mt from the previous week. Meanwhile, the tradable level of ex-China CRC offer prices has been heard at $615-625/mt FOB, against $620/mt FOB on October 18. According to sources, although ex-China CRC have seen downward correction, further rises in import iron ore prices and the rebounding HRC futures prices will provide certain support to CRC prices.
During the given week, CRC prices in the Chinese domestic market have edged down amid the prevailing wait-and-see stance among market players. Traders have been unwilling to take part in transaction activities, exerting a negative impact on the CRC market. At the same time, demand for CRC has not seen any significant improvement, negatively affecting prices in the spot market. However, import iron ore prices have moved on a rebounding trend in the past several days, bolstering CRC prices from the cost side.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,280/mt ($596/mt) ex-warehouse, decreasing by RMB 10/mt ($1.4/mt) compared to October 18, according to SteelOrbis’ information.
As of October 25, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,794/mt ($528/mt), increasing by RMB 47/mt ($7/mt) or up by 1.25 percent since October 18.
$1 = RMB 7.1785
