Ex-China CRC prices have moved sideways compared to the previous week.
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 23. Meanwhile, the tradable level of ex-China CRC offer prices has been heard at around $630/mt FOB, versus $625/mt FOB last week.
“While market players expect better demand in the approaching peak season of September and October, both supply and demand in the CRC market have remained slack,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the declining capacity utilization rates on the CRC producers’ side. However, inventory of CRC has been at relatively high levels, weakening the support for prices. At the same time, bad weather caused by typhoons Saola and Haikui has exerted a negative impact on the steel market. As the traditional peak season is approaching, market participants think the demand for CRC may improve in the near future. It is thought that CRC prices in the Chinese domestic market will likely continue their fluctuating trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,343/mt ($602/mt) ex-warehouse, increasing by RMB 6/mt ($0.8/mt) compared to August 23, according to SteelOrbis’ information.
As of August 30, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,870/mt ($539/mt), decreasing by RMB 67/mt ($9.3/mt) or up by 1.7 percent since August 23.
$1 = RMB 7.1816