Ex-China CRC prices have moved sideways over the past week as demand in the international market has been weak. Moreover, the trend in the local market has been negative.
At present, export offers for CRC given by major Chinese mills are at $1,020-1,030/mt FOB for December shipment, with the average prices remaining stable compared to October 13. “The decreasing local CRC prices and the cautious sentiments have resulted in ex-China CRC offer prices moving sideways,” an international trader told SteelOrbis. There are also some possibilities that export duties will be imposed from January, which has added to the situation.
During the given week, China’s local CRC prices have declined amid decreasing HRC futures prices and market players’ lack of confidence as regards the prospects for the future market. A round of cold weather has hit China, exerting a negative impact on demand for steel, affecting the CRC market. 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 6,386/mt ($996/mt) ex-warehouse, moving down by RMB 60/mt ($9.4/mt) compared to October 13, according to SteelOrbis’ information.
As of October 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,550/mt ($866/mt), decreasing by RMB 69/mt ($10.8/mt) or 1.2 percent since October 13.
$1 = RMB 6.4069
