Ex-China CRC prices have continued to edge down, though only slightly compared to the week before the Labor Day holiday. This is happening because decreases in the local spot market, weak demand and low iron ore prices are still observed.
At present, export offers for CRC given by major Chinese mills are at $650/mt FOB for July shipment, edging down by $10/mt compared to April 26.
The tradable level of ex-China CRC offer prices has been heard at $640/mt FOB, also declining by $10/mt as some small mills have been considering negotiating even at $630/mt FOB to stimulate demand, while some mills have been insisting on $640-650/mt FOB only.
“The decreasing HRC futures prices have exerted a negative impact on the CRC market, while steelmakers have reduced their production outputs since late April amid shrinking profitability, which has provided some support for prices after the holiday, though the sluggish demand will weaken CRC prices further” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market moved down first, while edging up later amid improved sentiments due to declining production. However, inventory levels of CRC have increased, negatively affecting prices. Demand has not indicated significant improvements, which will exert a negative impact on the CRC market. It is expected that CRC prices may see a slightly decreasing trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,300/mt ($623/mt) ex-warehouse, edging down by RMB 10/mt ($1.4/mt) compared to April 26, according to SteelOrbis’ information.
As of May 10, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,760/mt ($543/mt), decreasing by RMB 11/mt ($1.6/mt) or moving down by 0.3 percent since April 26.
$1 = RMB 6.9237