Ex-China CRC prices have moved up over the past week as the local market has posted a rebound amid better sentiments after the government announced economic stimuli, while production restrictions are expected in December.
At present, export offers for CRC given by major Chinese mills are at $630/mt FOB for February shipment, moving up by $20/mt compared to November 30.
The tradable level of ex-China CRC has been at $600-620/mt FOB, rising by $10-20/mt week on week. The average price of $610/mt FOB is said to be acceptable for some customers in South America and Southeast Asia. Also, the stronger RMB has led to higher export prices from China.
“The rising HRC futures prices, increasing local CRC prices, and the relaxation of Covid-19 measures have bolstered ex-China CRC offer prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have indicated certain rises amid the increasing trend of HRC futures prices and the easing of Covid-19 measures. However, most traders have been maintaining a wait-and-see stance as regards the future prospects for the CRC market. It is expected 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 4,380/mt ($626/mt) ex-warehouse, moving up by RMB 70/mt ($10.0/mt) compared to November 30, according to SteelOrbis’ information.
As of December 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,902/mt ($557.4/mt), increasing by RMB 40/mt ($5.7/mt) or 1.0 percent since November 30.
$1 = RMB 6.9975
