Ex-China CRC prices have moved up over the past week as mills have increased offers, having better expectations for the near future. Moreover, the gradual increases in spot and futures prices in China have exerted a positive impact on the overall mood.
At present, export offers for CRC given by major Chinese mills are at $670-680/mt FOB for October shipment, with a midpoint at $675/mt FOB, moving up by $15/mt compared to August 3.
The tradable level of ex-China CRC offer prices has been at $660/mt FOB, edging up by $10-20/mt week on week. After deals last week at lower levels, no new contracts have been reported at higher prices so far.
“HRC futures prices fluctuated within a limited range in the given week, affecting the CRC market, while ex-China HRC prices have increased, exerting a positive impact on sentiment in the CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up slightly amid the release of demand from downstream users. However, the demand for CRC has been slacker compared to previous years in the same period, exerting a negative impact on sentiment. Moreover, major Chinese steelmaker Baosteel has reduced its CRC prices by RMB 200/mt ($30/mt) for delivery in September, which will negatively affect the market. It is thought that CRC prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,483/mt ($662/mt) ex-warehouse, moving up by RMB 47/mt ($7/mt) compared to August 3, according to SteelOrbis’ information.
As of August 10, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,028/mt ($596/mt), increasing by RMB 8/mt ($1.2/mt) or 0.2 percent since August 3.
$1 = RMB 6.7695
