Ex-China CRC prices have fallen slightly over the past week amid slow sales in the local market and the downtrend in HRC futures prices, which has outweighed mills’ desires to hold prices firm or even increase them.
At present, export offers for CRC given by major Chinese mills are at $950/mt FOB for June shipment, down $5/mt compared to April 6. While last week most mills were insisting on $960/mt FOB, for now sentiment is bearish and inventories have been increasing.
“The continuous lockdown of Shanghai and strict control measures in other regions of China amid the Covid-19 pandemic have negatively affected market players’ sentiments, while they are waiting for an improvement in the near future,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid the slightly rising outputs and increasing inventory levels. Due to the rapid spread of the Covid-19 pandemic and strict control measures in many regions of China, transportation has been negatively affected. It is thought that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,626/mt ($882.5/mt) ex-warehouse, down RMB 4/mt ($0.63/mt) compared to April 6, according to SteelOrbis’ information.
As of April 13, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,086/mt ($798/mt), decreasing by RMB 182/mt ($28.5/mt) or 3.45 percent since April 6.
$1 = RMB 6.3752
