Ex-China CRC prices have edged down compared to the previous week as weak demand in the local market has exerted pressure. But a further decline is doubtful, according to market sources, as they expect a demand revival and the return of positive sentiment in the middle of February.
At present, export offers for CRC given by major Chinese mills are at $700/mt FOB for April shipment, down by $10/mt compared to February 1. The tradable level of ex-China CRC prices has been heard at $690/mt FOB, also down by $10/mt compared to last week.
“Import iron ore prices have moved down, weakening the support for CRC prices from the cost side, and the cautious sentiment has also exerted a negative impact on CRC prices as demand has not been as good as market players had expected,” a trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down as demand has not been as good as market players had expected. Following the previous rises, CRC producers and traders have adjusted their offer prices downward, trying to improve transaction activities. On February 8, HRC futures prices saw a rise of 1.5 percent compared to the previous trading day, signaling improved sentiment as regards the future prospects for the market. Downstream users’ rates of operation are anticipated to increase after the Lantern Festival, which will bolster CRC prices. It is thought that CRC prices in the Chinese domestic market will edge up slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,403/mt ($650/mt) ex-warehouse, moving down by RMB 174/mt ($25.7/mt) compared to February 1, according to SteelOrbis’ information.
As of February 8, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,126/mt ($609/mt), rising by RMB 34/mt ($5.0/mt) or edging up by 0.8 percent since February 1.
$1 = RMB 6.7752
