Ex-China CRC prices have moved up sharply over the past week as the local market has provided support in terms of demand specifically, while the local currency has been stronger, pushing prices up.
At present, export offers for CRC given by major Chinese mills are at $700/mt FOB for March shipment on average, moving up by $35/mt compared to January 4.
The tradable level of ex-China CRC offer prices has been at $690/mt FOB, moving up by $40/mt from the lowest possible level a week ago.
“The high levels of iron ore and HRC prices have bolstered CRC prices from the cost side, while market players expect better demand in the new year,” one international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have moved up amid the increasing trend of HRC futures prices. Some state-owned enterprises have concluded more purchases of CRC, resulting in the rising trend of traders’ offer prices for CRC. Currently, iron ore prices are at high levels, bolstering CRC prices from the cost side. Meanwhile, market players hold an optimistic attitude as regards the future prospects for the CRC market as they think China’s stimulus policies will boost demand for CRC in the new year. As the Chinese New Year holiday (January 21-27) is approaching, this week may offer a window for buying CRC, while the market will be quiet next week. It is thought 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 4,503/mt ($665/mt) ex-warehouse, edging up by RMB 43/mt ($6.3/mt) compared to January 4, according to SteelOrbis’ information.
As of January 11, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,193/mt ($618/mt), rising by RMB113/mt ($16.7/mt), edging up 2.8 since January 4.
$1 = RMB 6.7756
