Ex-China CRC prices have edged up by $10/mt compared to the previous week amid higher futures prices, gradual rises in the local market, and positive expectations for further developments.
At present, export offers for CRC given by major Chinese mills are at $730/mt FOB for May shipment, edging up by $10/mt compared to March 1.
The tradable level of ex-China CRC has been heard at $720/mt FOB, also increasing by $10/mt compared to last week, with some deals done at this level last week and now suppliers are trying to achieve $730/mt FOB.
“The relatively high level of import iron ore prices has bolstered ex-China CRC offer prices from the cost side, while the improved demand in the local market has also positively affected the CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up amid increasing HRC futures prices. Meanwhile, bullish sentiment has prevailed among market players after the Chinese government issued stimulus policies to boost economic development. Currently, steelmakers have been seeking to raise CRC prices amid the support from high-priced raw materials. It is thought that CRC prices in the Chinese domestic market will move on a firmly rising trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,737/mt ($681.6/mt) ex-warehouse, moving up by RMB 57/mt ($8.2/mt) compared to March 1, according to SteelOrbis’ information.
As of March 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,341/mt ($624.6/mt), rising by RMB 37/mt ($5.3/mt) or edging up by 0.86 percent since March 1.
$1 = RMB 6.9525
