Ex-China cold rolled coil (CRC) prices have moved sideways over the past week, in line with most other flat steel products amid some cost support from the coke side, stable local quotations and just slight decreases in futures prices. However, the outlook is bearish with the plum rainy season due to start in China, which will exert additional pressure on demand.
More specifically, ex-China CRC offer prices from mills are at $570-575/mt FOB this week, remaining stable on average week on week, while the tradable levels for ex-China CRC have been heard at $560-565/mt FOB, versus $560-565/mt last week, for delivery in August.
During the given week, CRC prices in the Chinese domestic market have fluctuated within a limited range amid slightly declining HRC futures prices. However, increasing coke prices have bolstered CRC prices firmly from the cost side. Due to the traditional off-season for business, bearish sentiments prevail among market players and so some sellers choose to sell at lower prices, aiming to bring in cash and avoid potential risks. The plum rainy season in eastern China is due to start late this week, which will negatively affect demand for CRC from downstream users. It is expected that CRC prices in the Chinese domestic market will edge down slightly in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,683/mt ($541/mt) ex-warehouse, increasing by RMB 3/mt ($0.44/mt) week on week, according to SteelOrbis’ information.
As of June 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,371/mt ($495/mt), decreasing by RMB 9/mt ($1.3/mt) or 0.3 percent since June 10, while declining by 0.47 percent compared to the previous trading day, June 16.
$1 = RMB 6.8096
