Ex-China CRC prices have edged up over the past week amid the rising trend in the local market and also following rises seen in the HRC market.
At present, export offers for CRC given by major Chinese mills are at $930-950/mt FOB for May shipment, moving up by $15/mt compared to March 16.
The tradable level of ex-China CRC has been at $930/mt FOB, $12.5/mt higher compared to March 16. But some sources said that in some cases up to $950/mt FOB could be accepted.
“The rebounding HRC futures prices have provided solid support for market players’ sentiments, while the rising trend in iron ore prices has also exerted a positive impact on CRC prices, though the strict control measures implemented due to the spread of the Covid-19 pandemic may affect the market in the near future,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have increased amid the decreasing inventory and declining output. The strict control measures for the Covid-19 pandemic have exerted a negative impact on the demand for CRC, while they have also reduced supply, which may provide support for prices. It is thought 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 5,546/mt ($858/mt) ex-warehouse, edging up by RMB 73/mt ($11.5/mt) compared to March 16, according to SteelOrbis’ information.
As of March 23, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,189/mt ($816/mt), rising by RMB 109/mt ($17.1/mt) or 2.15 percent since March 16.
$1 = RMB 6.3558
