Ex-China offer prices of cold rolled coil (CRC) have moved sideways in the past week against the background of the improved demand in the local market and the rapid spread of the coronavirus negatively affecting the market abroad.
At present, export offers for CRC given by major Chinese mills are at $510-515/mt FOB for late May delivery, moving sideways compared to March 4. However, some deals were heard at $505/mt FOB to Southeast Asia and South America.
During the given week, though local demand from downstream users has seen a certain improvement, high inventories have exerted a negative impact on CRC prices in the Chinese domestic market. However, market players are optimistic as regards the future prospects for the local market and so they are unlikely to decrease their export offer prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,103/mt ($589.5/mt) ex-warehouse, which is RMB 27/mt ($3.9/mt) lower as compared to March 4, according to SteelOrbis’ information.
As of March 11, HRC futures at the Shanghai Future Exchange are standing at RMB 3,484/mt ($500.6/mt), decreasing by RMB 7/mt ($1/mt) or 0.2 percent since March 4.
$1 = RMB 6.9612
