Ex-China offer prices of CRC have moved down sharply due to the rapid spread of the coronavirus worldwide negatively impacting the global economy and demand from overseas buyers.
At present, export offers for CRC given by major Chinese mills are at $465-470/mt FOB for late May delivery, down by $37.5/mt since March 18. At the same time, deals have been heard at $460-470/mt FOB, while last week the lowest level was $495/mt FOB. Falling HRC prices and the depreciation of the Chinese currency have also been among the reasons for the sharp drop in ex-China CRC prices.
During the given week, ferrous metal futures prices in China have moved down significantly, exerting a negative impact on the local CRC market. Though players in the CRC market have lowered prices, transaction activities have not been as good as expected. Against the background of the pandemic worldwide, a lot of downstream industries have halted production, with automobile manufacturers in particular idling their production lines. Accordingly, negative sentiment prevails in the Chinese CRC market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,970/mt ($561.2/mt) ex-warehouse, which is RMB 106/mt ($15/mt) lower as compared to March 18, according to SteelOrbis’ information.
As of March 25, HRC futures at the Shanghai Future Exchange are standing at RMB 3,314/mt ($468.5/mt), decreasing by RMB 152/mt ($21.5/mt) or 4.4 percent since March 18.
$1 = RMB 7.074
