Ex-China CRC prices have moved up sharply over the past week and they are expected to fluctuate at the current levels some time as customers are not very eager to purchase, at least in the export market.
At present, export offers for CRC given by major Chinese mills are at $670-680/mt FOB for February shipment, moving up by $45/mt compared to December 7.
The tradable level of ex-China CRC offer prices stands at $640-660/mt FOB, moving up by $40/mt week on week.
“The increasing HRC futures prices, rising local CRC prices and the relatively low inventory levels have positively affected ex-China CRC offer prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up amid the easing of Covid-19 measures and relatively low inventory levels. HRC futures prices have moved on an uptrend, bolstering CRC prices. At the same time, some large-scale state-owned traders started to conclude purchases for CRC from the spot market as they expected to see a rising trend. However, approaching to the end of the year, some traders will experience tight liquidity, which will exert a negative impact on CRC prices. It is thought that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,460/mt ($642/mt) ex-warehouse, moving up by RMB 80/mt ($11.5/mt) compared to December 7, according to SteelOrbis’ information.
As of December 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,069/mt ($585.5/mt), increasing by RMB 167/mt ($24.0/mt) or 4.3 percent since December 7.
$1 = RMB 6.9535
