Ex-China offer prices of cold rolled coil (CRC) have moved up slightly in the past week amid the rising trend in the local market, increasing HRC prices and firm demand.
At present, export offers for CRC given by major Chinese mills are at $455-465/mt FOB for late July, edging up by $5/mt compared to May 13 following a stable trend over the previous week. The reference deal price has been at $450-455/mt FOB to Southeast Asia and South America, up by $2.5/mt on average week on week. A deal for 5,000 mt CRC has been heard at $452.5/mt FOB China. The upward trend in ferrous metal futures prices and surging raw material prices have contributed to the rises in ex-China CRC offer prices.
During the given week, HRC and iron ore prices have seen big rises, pushing up CRC prices. Meanwhile, some regions in China have implemented production cuts for environmental protection purposes, exerting a positive impact on market players’ sentiments. Moreover, demand from downstream users has been good, bolstering CRC prices. It is expected that CRC prices in the Chinese domestic market will edge up slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,006/mt ($564.6/mt) ex-warehouse, up RMB 213/mt ($30/mt) compared to May 13, according to SteelOrbis’ information.
As of May 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,446/mt ($486/mt), increasing by RMB 109/mt ($15.4/mt) or 3.3 percent since May 13.
$1 = RMB 7.0956
