Ex-China CRC prices have moved sideways on week-on- week, but after a short uptrend seen earlier in the week negative sentiments have returned to the Chinese market as local CRC and HRC prices have eased.
At present, export offers for CRC given by major Chinese mills are at $610/mt FOB for January shipment, moving sideways compared to November 16.
The tradable level of ex-China CRC has been at $590-600/mt FOB, also stable week on week. But market sources have pointed out that most mills would not agree to price levels below $600/mt FOB.
“The limited demand in the export market and the downtrend in local CRC prices have weakened the support for ex-China CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved down amid the decreasing trend in HRC futures prices and the prevailing cautious sentiments among market players. CRC supplies arriving in the spot market have increased and so some traders have chosen to sell at lower prices, exerting a negative impact on the CRC market. Colder weather will hit China in the near future, which may negatively affect CRC prices too. It is expected that CRC prices in the Chinese domestic market will likely edge down in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,283/mt ($601/mt) ex-warehouse, moving down by RMB 33/mt ($4.6/mt) compared to November 16, according to SteelOrbis’ information.
As of November 23, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,774/mt ($529.3/mt), decreasing by RMB 36/mt ($5.05/mt) or 0.94 percent since November 16.
$1 = RMB 7.1281
