Ex-China CRC prices have indicated slight rises compared to the previous week given the rising trend of HRC futures prices and the slight uptrend of local CRC prices. However, according to sources, trade activity has remained weak and most suppliers are still ready to provide discounts if there are firm orders.
At present, export offers for CRC given by major Chinese mills are at around $630-650/mt FOB, for December shipment, as compared to $630/mt FOB last week. Meanwhile, the tradable level of ex-China CRC offer prices has been heard at $620-625/mt FOB, against $615-625/mt FOB last week. According to sources, rises in import iron ore prices and the increasing trends in HRC and iron ore futures prices have bolstered CRC prices.
During the given week, CRC prices in the Chinese domestic market have edged up amid improved sentiments due to China’s issuance of additional special bonds worth RMB 1 trillion for 2023 in the October-December period. Inventory of CRC has seen slight rises as demand from downstream users has not improved as expected. However, CRC producers have been unwilling to reduce their prices due to the support from increasing raw material prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,290/mt ($597.5/mt) ex-warehouse, increasing by RMB 10/mt ($1.4/mt) compared to October 25, according to SteelOrbis’ information.
As of November 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,865/mt ($538/mt), increasing by RMB 71/mt ($9.9/mt) or up by 1.9 percent since October 25.
$1 = RMB 7.1778
