Ex-China offer prices of cold rolled coil (CRC) have moved sideways in the past week due to the Labor Day holiday.
At present, export offers for CRC given by major Chinese mills are at $450-460/mt FOB for late June, moving sideways compared to April 29, following a slight decline over the previous week. The tradable value was at $440-450/mt FOB.
China has issued policies to stimulate automobile consumption, which is expected to boost the demand for CRC, though need more time to take effect. During the given week, the rising raw material prices bolstered domestic CRC prices to some extent. Meanwhile, the inventory level of CRC has gradually decreased, signaling the better demand, which also provide certain support to CRC prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,680/mt ($520.5/mt) ex-warehouse, up RMB 27/mt ($3.8/mt) compared to April 29, according to SteelOrbis’ information.
As of May 6, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,248/mt ($459.4/mt), increasing by RMB 89/mt ($12.6/mt) or 2.8 percent since April 29.
$1 = RMB 7.069
