Ex-China CRC prices have moved down sharply over the past week amid the declining trend in the local market and the drop in HRC futures prices.
At present, export offers for CRC given by major Chinese mills are at $870-890/mt FOB for June shipment, down by $30/mt compared to April 27.
The tradable level of ex-China CRC is at $860-880/mt FOB, while it was around $900/mt FOB before the May Day holidays.
“The Covid-19 restriction measures have continued to exert a negative impact on the CRC market, while the market performance may see changes in the near future,” an international trader told SteelOrbis.
During the given week, local CRC prices have moved down amid the downtrend in HRC futures prices. The inventories of CRC have indicated rises, weakening the support for prices. The lockdown in Shanghai may be eased in the near future, which has boosted market players’ sentiments and will exert a positive impact on the CRC market. It is expected that CRC prices in the Chinese domestic market will rise slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,450/mt ($810/mt) ex-warehouse, moving down by RMB 113/mt compared to April 27, according to SteelOrbis’ information.
As of May 11, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,775/mt ($709.5/mt), decreasing by RMB 173/mt ($26/mt) or 3.6 percent since April 27.
$1 = RMB 6.729