Ex-China CRC prices have indicated an uptrend over the past week as the local market has posted increases following rises in futures prices.
At present, export offers for CRC given by major Chinese mills are at $610/mt FOB for January shipment, moving up by $20/mt compared to November 9.
The tradable level of ex-China CRC offer prices stands at $590-600/mt FOB, moving up by $7.5/mt week on week.
“The rising trend in ferrous metal futures prices and the increasing trend in ex-China HRC prices have bolstered ex-China CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have indicated an uptrend amid the rebounding trend in HRC futures prices. Following the previous declining trend in CRC prices, the mood of market players was negatively affected. Currently, they have chosen to raise prices to boost downstream users’ purchases. However, market players think that the rises in CRC prices will only last for the short term as the cold winter weather is approaching. It is expected that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,316/mt ($613/mt) ex-warehouse, moving up by RMB 50/mt ($7.0/mt) compared to November 9, according to SteelOrbis’ information.
As of November 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,810/mt ($541/mt), increasing by RMB 124/mt ($17.6/mt) or 3.4 percent since November 9.
$1 = RMB 7.0363
