Ex-China cold rolled coil (CRC) prices have remained relatively stable during the past week amid the prevailing cautious sentiments among market participants coupled with the stability of prices in the local market even though futures prices have been on the rise.
At present, export offers for CRC from China are in a range of around $535-560/mt FOB, for February shipment, the same as last week. Meanwhile, the tradable levels for ex-China CRC have remained at $535-540/mt FOB.
During the given period, HRC futures prices have moved up, easing the downward pressure on the CRC market. The relatively low inventory levels in the CRC market and the low prices of CRC have stimulated some traders to conclude purchases, bolstering prices. Market players are still struggling regarding the volumes needed for winter storage. The demand from downstream users may slacken further, which will result in increasing inventories of CRC. It is thought that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,870/mt ($538/mt) ex-warehouse, moving sideways compared to January 8, according to SteelOrbis’ information.
As of January 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,447/mt ($479/mt), increasing by RMB 134/mt ($19/mt) or 4.0 percent since January 9, while up 1.09 percent compared to the previous trading day, January 15.
$1 = RMB 7.1883
