Ex-China offer prices of cold rolled coil (CRC) have indicated big declines amid the downtrends of local prices and HRC futures prices, and given the prevailing bearish sentiments among market players.
At present, export offers for CRC given by major Chinese mills are at $940-960/mt FOB for July shipment, while buyers need to bear the potential risks of any adjustment of export tax rebate, with the average offer prices decreasing by $100/mt compared to May 19. The actual deal prices could be lower than the offer prices and the tradable price level has already been heard at $890/mt FOB. The gap between HRC and CRC export prices from China is currently very small.
“Decreasing HRC futures prices have negatively affected ex-China CRC offer prices, while most sellers have stopped giving export offer prices amid the possible adjustment of the export tax rebate,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have declined sharply amid the continuous decreasing trend of ferrous metal futures prices. Meanwhile, bearish sentiment prevails among market players following the big price decreases.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,046/mt ($943/mt) ex-warehouse, moving down by RMB 657/mt ($102.5/mt) compared to May 19, according to SteelOrbis’ information.
As of May 26, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,017/mt ($783/mt), decreasing by RMB 661/mt ($156.4/mt) or 11.6 percent since May 19.
$1 = RMB 6.4099
