Ex-China offer prices of cold rolled coil (CRC) have edged up in the past week amid rising local CRC prices, gains in the HRC segment and in futures prices, as well as on the back of the strong Chinese currency.
At present, export offers for CRC given by major Chinese mills are at $645-655/mt FOB for late January shipment, moving up by $25/mt on average compared to November 4. Reference deal prices have been heard at $635-640/mt FOB, up by $25-30/mt compared to the previous week, while buyers have been cautious in concluding purchases.
During the given week, HRC futures prices in China have moved up sharply, exerting a positive impact on CRC prices. Meanwhile, major Chinese steelmaker Baosteel has raised its ex-works prices for CRC by RMB 100/mt ($15.1/mt) for December, bolstering the CRC market. At the same time, supply of CRC has been tight, which has also supported prices in the spot market. It is expected that CRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,916/mt ($744/mt) ex-warehouse, rising by RMB 140/mt ($21/mt) compared to November 4, according to SteelOrbis’ information.
As of November 11, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,948/mt ($597.5/mt), increasing by RMB 61/mt ($9.2/mt) or 1.57 percent since November 4.
$1 = RMB 6.607
