Ex-China offer prices of cold rolled coil (CRC) have moved up in the past week, following a stable trend seen in the previous week, as domestic CRC prices have continued to follow their uptrend, while HRC prices have also increased and the overall outlook for September is good.
At present, export offers for CRC given by major Chinese mills are at $590/mt FOB for late November, moving up by $15/mt compared to August 26. The reference deal prices are at $580-585/mt FOB, to Southeast Asia and South America, while in the previous week the highest tradable level was at $565/mt FOB. Rising iron ore prices, steelmakers’ higher ex-works prices and the approaching peak season for business have bolstered sentiment in the CRC market.
During the given week, HRC spot and futures prices in China moved up, exerting a positive impact on the CRC market. Meanwhile, inventories in the CRC market have been at relatively low levels, bolstering CRC prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,673/mt ($683/mt) ex-warehouse, rising by RMB 103/mt ($15/mt) compared to August 26, according to SteelOrbis’ information.
As of September 2, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,033/mt ($590/mt), increasing by RMB 105/mt ($15.4/mt) or 2.7 percent since August 26.
$1 = RMB 6.8376
