Ex-China CRC prices have moved sideways over the past week and trading activity has still been subdued as customers have continued to consider the current prices too high, while the uncertainty over the possible introduction of export taxes remains.
At present, export offers for CRC given by major Chinese mills are at $1,070-1,090/mt FOB for October shipment, with the average prices remaining stable compared to August 25. “The weak trend in iron ore prices has slackened the support for ex-China CRC prices, while the sluggish demand in overseas markets has also affected prices,” an international trader told SteelOrbis. But suppliers have been not willing to cut offers, as they are not willing to assume all the risks of the possible export tax, while transportation issues have also added to the situation.
During the given week, domestic CRC prices in China have been relatively stable, though HRC futures prices have declined and bearish sentiments have prevailed among market players. Demand for CRC has remained weak and so customers have mostly purchased just in line with their needs.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,420/mt ($993/mt) ex-warehouse, moving down by RMB 3/mt ($0.46/mt) compared to August 25, according to SteelOrbis’ information.
As of September 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,492/mt ($849/mt), decreasing by RMB 77/mt ($12/mt) or 1.4 percent since August 25.
$1 = RMB 6.468