Ex-China CRC prices moved sideways over the past week, following the cancellation of the export tax rebate and the previous rises in prices. Though demand has been very limited and uncertainty over the possible introduction of export duties has added pressure, mills have been unwilling to lower prices, seeing lower production and waiting for a clearer market situation.
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 11. “Following the cancellation of the tax rebate on CRC, traders and steelmakers have raised their offer prices and are currently waiting for responses from buyers,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have declined slightly amid decreasing HRC prices, while traders are mostly cautious as regards the prospects for the future market. The demand for CRC has still remained slack, with users purchasing only as needed. It is thought that CRC prices in the Chinese domestic market will likely move sideways in the coming week or may decline further.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,403/mt ($986.6/mt) ex-warehouse, moving down by RMB 30/mt ($4.6/mt) compared to August 11, according to SteelOrbis’ information.
As of August 18, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,482/mt ($845/mt), decreasing by RMB 419/mt ($64.5/mt) or 7.1 percent since August 11.
$1 = RMB 6.4915
