Ex-China offer prices of cold rolled coil (CRC) have moved up amid rising HRC futures prices and the increasing trend in local CRC prices, against the backdrop of strict inspections of elimination of excess capacities.
At present, export offers for CRC given by major Chinese mills are at $920-950/mt FOB for September shipment amid the rising trend of ferrous metal futures prices, with the average offer prices $10/mt higher compared to July 7. The tradable price level has increased from $870-900/mt FOB over the past week to $910/mt FOB at least.
“The inspections reviewing overcapacity elimination in Jiangsu Province have bolstered market players’ sentiments and pushed up ferrous metal futures prices, resulting in rises in CRC prices,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have indicated big rises amid increasing HRC futures prices and anticipated steel production restrictions. However, inventory of CRC has increased, which exerted a negative impact on prices. It is thought that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,396/mt ($1,064/mt) ex-warehouse, moving up by RMB 280/mt ($43.2/mt) compared to July 7, according to SteelOrbis’ information.
As of July 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,999/mt ($926/mt), increasing by RMB 231/mt ($35.6/mt) or 4.0 percent since July 7.
$1 = RMB 6.4806
