Ex-China cold rolled coil (CRC) prices have continued to move up slightly over the past week, amid better sentiments in the local market, coupled with further hikes in HRC futures prices.
More specifically, ex-China CRC offer prices from mills are at $550-570/mt FOB this week, rising by $5/mt on the lower end week on week, while the tradable levels for ex-China CRC have been heard at $550-565/mt FOB, increasing by $5/mt on lower end week on week. According to sources, Chinese suppliers have managed to sell sizable volumes of CRC during the past week to different trade destinations, especially in Asia.
During the given week, CRC prices in the Chinese domestic market have edged up amid increasing HRC futures prices. Major Chinese steelmaker Shougang has issued its ex-works prices for delivery in June, announcing stable CRC prices, thereby bolstering market sentiments to a certain degree.
Meanwhile, transaction activities have improved, exerting a positive impact on CRC prices. In addition, prices of raw materials, including iron ore and coke, have edged up, also providing support for CRC prices. Since the Labor Day holiday (May 1-5) is approaching, some inventory restocking is likely to occur in the CRC market. Though inventories have not indicated significant increases, sufficient supply levels of CRC may limit the upward momentum of prices. It is thought 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 3,597/mt ($524/mt) ex-warehouse, increasing by RMB 17/mt ($2.5/mt) week on week, according to SteelOrbis’ information.
As of April 22, HRC futures at Shanghai Futures Exchange are standing at RMB 3,388/mt ($494/mt), increasing by RMB 98/mt ($14.3/mt) or 3.0 percent since April 15, while up 0.62 percent compared to the previous trading day, April 21.
$1 = RMB 6.8635
