Ex-China CRC prices have remained stable over the past week as some gradual positive signals in the local market including firm spot prices and higher futures prices have failed to push export prices up, taking into account still weak demand and the not very bright outlook.
At present, export offers for CRC given by major Chinese mills are at $610/mt FOB on average for February shipment, remaining stable compared to November 23.
The tradable level of ex-China CRC offer prices is still at $590-600/mt FOB, moving sideways week on week, but deals have been very limited.
“The cold weather, limited demand in the export market, and buyers’ expectations that prices will not be high have all affected Chinese CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market edged down first while moving up later. The increasing trend in HRC futures prices has bolstered CRC prices. However, the cold weather has exerted a negative impact on the demand for CRC. At the same time, as the end of the year is approaching and the Chinese New Year is in January, there will be limited time for market players to participate in transaction activities ahead of the long holiday. It is expected that CRC prices in the Chinese domestic market will likely follow a fluctuating trend in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,310/mt ($600.5/mt) ex-warehouse, moving up by RMB 27/mt ($3.8/mt) compared to November 23, according to SteelOrbis’ information.
As of November 30, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,862/mt ($538/mt), increasing by RMB 88/mt ($12.3/mt) or 2.3 percent since November 23.
$1 = RMB 7.1769
