Ex-China offer prices of cold rolled coil (CRC) have moved up sharply in the past week amid surging iron ore prices, increasing ferrous metal futures prices and rising local CRC prices.
At present, export offers for CRC given by major Chinese mills are at $705-710/mt FOB for late February shipment, moving up by $27.5/mt on average compared to December 2. Reference deal prices have been heard at $690-700/mt FOB, up $20/mt compared to the previous week. More enquiries have been heard from overseas buyers, but demand in the local market for CRC has also been firm.
During the given week, CRC prices have moved up amid rising HRC futures prices and surging iron ore prices. Meanwhile, the supply shortage of CRC bolstered prices in the spot market. Currently, inventory is at relatively low levels, which will positively affect CRC prices in the coming period.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,276/mt ($808/mt) ex-warehouse, rising by RMB 143/mt ($22/mt) compared to December 2, according to SteelOrbis’ information.
As of December 9, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,275mt ($655/mt), increasing by RMB 8/mt ($1.2/mt) or 0.19 percent since December 2.
$1 = RMB 6.5311
