Ex-China cold rolled coil (CRC) prices have moved sideways over the past week amid the declines in local CRC prices and HRC futures prices.
More specifically, ex-China CRC offer prices from mills have been at $520-540/mt FOB this week, remaining stable week on week, while the tradable levels for ex-China CRC have been heard at $510-515/mt FOB.
During the given period, HRC futures prices have indicated declines, negatively affecting CRC prices. Cautious sentiments have prevailed among market players as demand for CRC from downstream users has been limited. Meanwhile, market participants have been unwilling to build up stocks, weakening the support for CRC prices. Major Chinese steelmakers Anshan Iron and Steel and Benxi Iron and Steel (Bengang) have raised their local CRC base prices by RMB 100/mt ($14/mt) for delivery in January, bolstering market sentiments to a certain degree. It is thought that CRC prices in the Chinese domestic market may soften in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,503/mt ($496/mt) ex-warehouse, decreasing by RMB 7/mt ($1.0/mt) week on week, according to SteelOrbis’ information.
As of December 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,245/mt ($460/mt), decreasing by RMB 37/mt ($5.2/mt) or 1.1 percent since December 10, while increasing by 0.03 percent compared to the previous trading day, December 16.
$1 = RMB 7.0573
