Ex-China CRC prices have moved sideways compared to the previous week amid the prevailing improved sentiments.
At present, export offers for CRC given by major Chinese mills are at $635-640/mt FOB for October shipment, moving sideways compared to August 9. The tradable level of ex-China CRC offer prices has been heard at $635/mt FOB.
During the given week, CRC prices in the Chinese domestic market have edged down amid the prevailing cautious sentiments among market players. Traders have been unwilling to build up stocks due to their insufficient orders from downstream users, exerting a negative impact on CRC prices. Market participants’ sentiments have been bolstered as the People’s Bank of China (PBOC) announced on August 15 a cut in MLF rates by 15 basis points to 2.5 percent and cut the seven-day reverse repo operation rate by 10 basis points to 1.8 percent. Market players expect a better performance in September, which will positively affect the CRC market in the near future.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,327/mt ($601/mt) ex-warehouse, decreasing by RMB 20/mt ($2.8/mt) compared to August 9, according to SteelOrbis’ information.
As of August 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,926/mt ($545/mt), decreasing by RMB 38/mt ($5.3/mt) or down by 0.96 percent since August 9.
$1 = RMB 7.1986
