Ex-China CRC prices have edged up compared to the previous week amid improved sentiments even though last week offers had already surged by at least $20/mt. Trading in the export market has been limited due to the recent price hikes.
At present, export offers for CRC given by major Chinese mills are at $650-660/mt FOB for October shipment, moving up by $10/mt compared to July 26.
The tradable level of ex-China CRC has been heard at $640-645/mt FOB, up by $5/mt over the past week. “We are offering at higher levels, so there were no deals this week,” one Chinese producer said.
“Rising coke prices have provided support for CRC prices, while the expected decline in output has also bolstered sentiments. Major Chinese steelmaker Shagang Group has raised its HRC prices by RMB 200/mt [$28/mt] for August, also positively affecting CRC spot prices,” one international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have edged up slightly amid Chinese policymakers’ determination to boost local demand, for example, issuing policies to lift restrictions on purchasing houses in megacities and implementing policies for rebuilding villages inside megacities. At the same time, announcements of production restrictions have bolstered market sentiments. However, demand for CRC has not seen any significant improvement, especially against the backdrop of severe floods caused by typhoon Doksuri in northern China. 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 4,353/mt ($610.5/mt) ex-warehouse, increasing by RMB 103/mt ($14.5/mt) compared to July 19, according to SteelOrbis’ information.
As of August 2, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,030/mt ($564/mt), decreasing by RMB 21/mt ($2.94/mt) or up by 0.5 percent since July 26.
$1 = RMB 7.1368
