Ex-China CRC prices have moved up compared to the previous week amid support from the local market and rising futures prices, while demand is the local market has also been firm, resulting in gradual declines in inventories.
At present, export offers for CRC given by major Chinese mills are at $740/mt FOB for May shipment, moving up by $10/mt compared to March 8.
The tradable level for ex-China CRC offer prices has been heard at $730/mt FOB, also rising by $10/mt compared to previous deals. This level is considered to be competitive.
“The rising trend of import iron ore prices has positively affected ex-China CRC offer prices, while major Chinese steelmaker Baosteel’s increased CRC prices for April have also bolstered market sentiment,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up amid increasing HRC futures prices and improved sentiments among market players. Transaction activities have improved in March, while there is space for a further improvement. Moreover, major Chinese steelmaker Baosteel increased its prices for CRC by RMB 200/mt ($29/mt) for April, bolstering the CRC market. Recently, inventory of CRC has declined, which will exert a positive impact on prices. It is expected that CRC prices in the Chinese domestic market will edge up in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,797/mt ($698.5/mt) ex-warehouse, moving up by RMB 60/mt ($8.7/mt) compared to March 8, according to SteelOrbis’ information.
As of March 15, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,438/mt ($646.2/mt), rising by RMB 97/mt ($14.1/mt) or edging up by 2.2 percent since March 8.
$1 = RMB 6.868
