Ex-China offer prices of cold rolled coil (CRC) have edged down slightly this week amid the downtrend in local prices and decreasing ferrous metal futures prices. But the pace of decline has been minimum as export offers have already been at a very low level.
At present, export offers for CRC given by major Chinese mills are at $920-950/mt FOB for August shipment amid the decreasing trend in ferrous metal futures prices, with the average offer prices decreasing by $5/mt compared to June 16.
Very limited deals have been heard at around $890-900/mt FOB this week, versus $900/mt FOB and some at $870-880/mt FOB last week, though buyers from overseas market have been mostly unwilling to conclude purchases for CRC.
“The vehicle output decreased in China, which will slacken the demand for CRC in the local market, which will exert a negative impact on ex-China CRC prices,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have seen big declines due to the sharp decreases in ferrous metal futures prices. Bearish sentiments prevailed among market players, weakening the support to CRC market. Demand for CRC has been slack. Moreover, the inventory of CRC has seen slight rises. It is thought that CRC prices in the Chinese domestic market will move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,030/mt ($958/mt) ex-warehouse, moving down by RMB 110/mt ($17/mt) compared to June 16, according to SteelOrbis’ information.
As of June 23, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,153/mt ($798/mt), decreasing by RMB 127/mt ($19.7/mt) or 2.4 percent since June 16.
$1 = RMB 6.4621
