Ex-China CRC prices have moved sideways over the past week despite previous expectations of a rebound after the long holiday. The still weak local market and outbreaks of Covid-19 have ensured that the mood among exporters has remained bearish.
At present, export offers for CRC given by major Chinese mills are at $630/mt FOB for December shipment, remaining stable compared to September 28.
The tradable level of ex-China CRC offer prices has been at $620/mt FOB, also moving sideways compared to the pre-holiday levels, but some suppliers are targeting not lower than $625/mt FOB.
“The Covid-19 pandemic staged a comeback following the long National Day holiday as people were moving around, exerting a negative impact on the steel market and weakening market players’ sentiments due to restriction measures,” an international trader told SteelOrbis.
During the past two weeks, CRC prices in the Chinese domestic market have fluctuated within a limited range. Some downstream users have started to replenish stocks following the long holiday, bolstering CRC prices to some extent. However, HRC futures prices have moved on a downtrend, exerting a negative impact on market sentiment. At the same time, the repeated outbreaks of the Covid-19 pandemic have resulted in strict control measures in some regions of China. It is thought that CRC prices in the Chinese domestic market may move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,403/mt ($619/mt) ex-warehouse, edging up by RMB 7/mt ($1/mt) compared to September 28, according to SteelOrbis’ information.
As of October 12, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,770/mt ($530/mt), decreasing by RMB 100/mt ($14.0/mt) or 2.6 percent since September 28.
$1 = RMB 7.1102