Ex-China CRC prices have moved up compared to the previous week given the recovery seen in local CRC quotes and HRC futures prices at the end of last week and at the beginning of this week. However, the outlook has become unclear on Wednesday, June 7, as futures prices have slumped, causing turbulence in the market.
At present, export offers for CRC given by major Chinese mills are at $625-630/mt FOB for July shipment, versus $600-610/mt May 31. Meanwhile, the tradable level of ex-China CRC offer prices has been heard at $625/mt FOB, up $30/mt compared to May 31.
“The information regarding production cuts in some regions of China has bolstered market sentiments, and the decreasing inventory levels have provided some support for CRC prices, though demand has not seen a big improvement yet,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up amid decreasing inventory levels. Meanwhile, steelmakers’ production capacity utilization rates have seen slight rises in the given period, though production cuts are expected to be implemented in the near future. However, the demand for CRC has not seen any significant improvement, which has exerted a negative impact on prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,237/mt ($595/mt) ex-warehouse, rising by RMB 127/mt ($17.8/mt) compared to May 31, according to SteelOrbis’ information.
As of June 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,721/mt ($523/mt), increasing by RMB 140/mt ($19.7/mt) or up by 3.9 percent since May 31, but down by RMB 44/mt ($6/mt) day on day.
$1 = RMB 7.1196
