Ex-China cold rolled coil (CRC) offer prices have moved up further in the past week amid the rising trend in the local market.
At present, export offers for CRC given by major Chinese mills are at $530-540/mt FOB for late October, rising by $10/mt compared to July 29 following a stable trend in the previous week.
The reference deal prices have been heard at $520-525/mt FOB, to Southeast Asia and South America, up by $10-15/mt from late July. “The good performance in the local CRC market has reduced the supply to the export market as steelmakers have been willing to receive orders at lower than $530/mt FOB as they feel optimistic as regards the prospects for the coming peak season,” said a trader.
During the given week, Guangxi Province-based Liuzhou Iron and Steel raised its ex-works prices for CRC by RMB 30/mt ($4.3/mt), bolstering CRC prices in the spot market. Meanwhile, the supply of CRC has been tight, providing support for CRC prices. At the same time, inventory of CRC has been at relatively low levels, exerting a positive impact on the CRC market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,406/mt ($632/mt) ex-warehouse, rising by RMB 90/mt ($12.9/mt) compared to July 29, according to SteelOrbis’ information.
As of August 5, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,911/mt ($561/mt), increasing by RMB 109/mt ($15.6/mt) or 2.9 percent since July 29.
$1 = RMB 6.9752
