Ex-China CRC offer prices have edged up compared to the previous week, supported by the gradual revival in the local market and finally positive movement in futures.
At present, export offers for CRC given by major Chinese mills are at $710/mt FOB for April shipment, edging up by $10/mt compared to February 8.
The tradable level of ex-China CRC offer prices has been heard at $690-700/mt FOB, up by $5-10/mt compared to last week.
“The rising trend of import iron ore prices has exerted a positive impact on CRC prices, and Baosteel’s hikes in ex-works prices for delivery in March have also positively affected the CRC spot market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up, while inventory levels have been at a relatively high level. At the same time, major Chinese steelmaker Baosteel raised its CRC prices by RMB 200/mt ($28/mt) for delivery in March, bolstering market sentiment. Meanwhile, following previous declines, HRC futures prices moved up over the past two trading days, exerting a positive impact on CRC prices. However, the release of demand from downstream users still needs more time. It is expected that CRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,460/mt ($654/mt) ex-warehouse, moving up by RMB 57/mt ($8.4/mt) compared to February 8, according to SteelOrbis’ information.
As of February 15, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,172/mt ($612/mt), rising by RMB 46/mt ($6.7/mt) or edging up by 1.1 percent since February 8.
$1 = RMB 6.8183
