Ex-China offer prices of cold rolled coil (CRC) have indicated a big rise in the past week amid bullish sentiments, major steelmakers raising ex-works prices and increasing iron ore prices.
At present, export offers for CRC given by major Chinese mills are at $570-580/mt FOB for late October, rising by $30/mt compared to that recorded on August 12, following a rising trend over the previous week. Rare deals have been heard, with reference prices of $555-565/mt FOB to Southeast Asia and Southern America, up by $30/mt on average.
Sources have said that firm demand for CRC in the local market in China and rising costs amid raw material prices increase have led to such a sharp rise in the export CRC market.
During the given week, Chinese major steelmaker Hebei Iron and Steel Group increased its prices for cold rolled coil (CRC) by RMB 300/mt ($44/mt) for September, exerting a positive impact on market players’ sentiments and bolstering CRC prices in the spot market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,530/mt ($655/mt) ex-warehouse, rising by RMB 94/mt ($13.6/mt) compared to August 12, according to SteelOrbis’ information.
As of August 19, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,966/mt ($573.4/mt), increasing by RMB 66/mt ($9.6/mt) or 1.7 percent since August 12.
$1 = RMB 6.9168
