Ex-China CRC prices have moved down over the past week, offsetting the previous rises seen last week. Following some export deals done at slightly higher levels, bids have eased again. And without support from domestic demand in China, CRC suppliers had no other choice but to cut prices for foreign customers.
At present, export offers for CRC given by major Chinese mills are at $660/mt FOB for October shipment, moving down by $15/mt compared to August 10.
The tradable level of ex-China CRC offer prices has been at $650/mt FOB, edging down by $10/mt week on week. While last week some deals to South America and Asia were reported at $660/mt FOB, now bids are not higher than $650/mt FOB, according to sources.
“The declining HRC futures prices and slack demand have negatively affected the CRC market,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have declined amid decreasing HRC futures prices. CRC output has decreased in the given week, while inventory levels have declined, bolstering prices to some extent. However, the widespread hot weather has exerted a negative impact on the demand for CRC, and this situation will likely continue for another week. 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 4,446/mt ($655/mt) ex-warehouse, moving down by RMB 37/mt ($5.5/mt) compared to August 10, according to SteelOrbis’ information.
As of August 17, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,905/mt ($575/mt), decreasing by RMB 123/mt ($18.1/mt) or 3.1 percent since August 10.
$1 = RMB 6.7863
