Ex-China CRC prices have indicated slight rises compared to the previous week given the recovery in local CRC quotes and HRC futures prices in China, coupled with the anticipated improvement of demand during the peak season of September and October.
At present, export offers for CRC given by major Chinese mills are at $635-645/mt FOB for November shipment, edging up slightly from $635-640/mt FOB last week. Meanwhile, the tradable level for ex-China CRC offer prices has been heard at around $635/mt FOB, up by $5/mt week on week. “Demand for CRC has been quite good, providing support for prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up as China has issued several stimulus policies to boost the real estate sector, which bolstered the steel market. However, production restrictions on steelmakers have not been implemented strictly yet, weakening the support for the steel market at the current stage. As demand for CRC will improve in the peak season of September and October, bullish sentiments have prevailed among market players. It is expected that CRC prices in the Chinese domestic market will likely move on a firm trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,417/mt ($613.5/mt) ex-warehouse, increasing by RMB 74/mt ($10.3/mt) compared to August 30, according to SteelOrbis’ information.
As of September 6, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,908/mt ($543/mt), rising by RMB 38/mt ($5.3/mt) or up by 1.0 percent since August 30.
$1 = RMB 7.1969
