Ex-China CRC prices have risen in the past week amid rising HRC futures prices and domestic CRC quotes.
At present, export offers for CRC given by major Chinese mills are at around $655-670/mt FOB on average, for January shipment, moving up by $7.5/mt on average from the previous week. Meanwhile, the tradable level of ex-China CRC offer prices has been heard at around $648-650/mt FOB, against $630-635/mt FOB last week.
During the given week, raw material prices, including import prices of iron ore and coke, have seen increases, bolstering CRC prices from the cost side. At the same time, demand and supply has been in a balanced situation, providing some support for CRC prices. However, following previous rises in ferrous metal futures prices, they have started to indicate some downward corrections, which may exert a negative impact on market sentiments in the near future. Thus, 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 4,337/mt ($609/mt) ex-warehouse, increasing by RMB 47/mt ($6.6/mt) compared to November 15, according to SteelOrbis’ information. As of November 22, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,059/mt ($570/mt), increasing by RMB 59/mt ($8.3/mt) or up by 1.5 percent since November 15.
$1 = RMB 7.1254
