Ex-China CRC prices have moved up significantly compared to the previous week amid the prevailing improved sentiments among market players as Chinese policymakers issued policy measures to promote the transformation and upgrading of villages inside megacities.
At present, export offers for CRC given by major Chinese mills are at $640-650/mt FOB for September shipment, moving up by $22.5/mt compared to July 19.
The tradable level of ex-China CRC offer prices has been heard at $635-640/mt FOB, increasing by $20/mt compared to July 19.
“Rising HRC futures prices have bolstered CRC prices, while the prevailing improved sentiments have provided solid support for the CRC market, and the increases in raw material prices have also helped,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up sharply amid the rises in HRC futures prices. At the same time, policies for rebuilding villages inside megacities in China have bolstered market sentiments, exerting a positive impact on the CRC market. Moreover, demand has improved slightly compared to last week, though it is still the traditional offseason. The new typhoon Doksuri is going to hit China in a one of two days’ time, which will negatively affect the CRC market. It is expected that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,353/mt ($610.5/mt) ex-warehouse, increasing by RMB 103/mt ($14.5/mt) compared to July 19, according to SteelOrbis’ information.
As of July 26, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,051/mt ($568/mt), increasing by RMB 208/mt ($29.2/mt) or up by 5.4 percent since July 19.
$1 = RMB 7.1295
