Ex-China offer prices of cold rolled coil (CRC) have moved up in the past week amid increasing HRC prices, the strength of the Chinese currency, and higher local CRC prices. Demand for Chinese CRC has been firm in both the export and local markets.
At present, export offers for CRC given by major Chinese mills are at $655-670/mt FOB, up $5/mt on average compared to November 18. Reference deal prices have been heard at $650-660/mt FOB, up $7.5/mt compared to the previous week, as customers from South America have still been accepting higher levels.
During the given week, CRC prices in the Chinese domestic market have moved up further amid rising raw material prices. Meanwhile, inventory of CRC has decreased, bolstering prices. At the same time, supply shortages have provided support for CRC prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,056/mt ($770/mt) ex-warehouse, rising by RMB 96/mt ($14.6/mt) compared to November 18, according to SteelOrbis’ information.
As of November 25, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,032/mt ($614/mt), decreasing by RMB 15/mt ($2.3/mt) or 0.4 percent since November 18.
$1 = RMB 6.5749
