Ex-China CRC prices have moved on a downtrend compared to the prices two weeks ago as without support from domestic demand in China, which was highly expected by customers during the past weeks, CRC suppliers had no other choice but to cut prices for foreign customers.
At present, export offers for CRC given by major Chinese mills are at $700/mt FOB for June shipment, moving down by $30/mt compared to March 29.
The tradable level of ex-China CRC offer prices has been heard at $690/mt FOB, down by $20/mt over the past two weeks.
“The decreasing trend in HRC futures prices negatively affected CRC prices, while the declining raw material prices weakened the support to CRC market, though market players expected for better performance in the coming period due to anticipated improved demand,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down amid the quiet transaction activities. Raw material prices edged down, weakening the support to CRC prices from cost side. At the same time, demand for CRC has been slack amid the impact of rainy weather. At the same time, HRC futures prices indicated a downtrend, exerting a negative impact on CRC market. It is thought that CRC prices in the Chinese domestic market will move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,573/mt ($665/mt) ex-warehouse, moving down by RMB 150/mt ($22/mt) compared to March 29, according to SteelOrbis’ information.
As of April 12, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,997/mt ($581/mt), decreasing by RMB 211/mt ($31/mt) or moving down by 5.0 percent since March 29. (the main HRC futures contract shifted into hc2310)
$1 = RMB 6.8854
