Ex-China CRC prices have moved sideways over the past weeks amid the falling trend of HRC futures prices and decreasing iron ore prices. However, mills have not been ready to cut prices for CRC in such conditions, hoping that the uptrend will resume later this month.
At present, export offers for CRC given by major Chinese mills are at $900-910/mt FOB for April shipment, remaining stable compared to February 9. The tradable level of ex-China CRC is still close to $900/mt FOB, with limited deals done at this level.
“The Chinese government has implemented scrutiny of iron ore prices, exerting a negative impact on prices, and weakened support for CRC. But CRC producers and traders are quite optimistic towards the prospects for the future market as they believe the resumption of activities of downstream users will bolster CRC prices,” an international trader told SteelOrbis.
During the given week, Chinese domestic CRC prices have indicated declines amid the fluctuating trend of ferrous metal futures prices and the prevailing bearish sentiments among market players. Demand for CRC has been quite slack as some players have not been back in the market, resulting in a wait-and-see stance among most buyers. However, demand for CRC is expected to improve in the near future. It is expected that CRC prices may edge up slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,480/mt ($863/mt) ex-warehouse, edging down by RMB 30/mt ($4.7/mt) compared to February 9, according to SteelOrbis’ information.
As of today, February 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,939/mt ($778/mt), decreasing by RMB 41/mt ($6.5/mt) or 0.82 percent since February 9. Falling declines on the first two days this week, futures prices for HRC have rebounded today to some extent.
$1 = RMB 6.3463
