The tradable level of ex-China CRC prices has edged down slightly in the past week amid declining HRC spot and futures prices and the downtrend in local CRC prices.
At present, export offers for CRC given by major Chinese mills are at $630-640/mt FOB for November shipment, moving sideways from the pre-holiday level. Meanwhile, the tradable level of ex-China CRC offer prices has declined to $620/mt FOB, versus $630/mt FOB recorded on September 27. “Market players mostly hold a cautious attitude towards the future prospects for the CRC market following the long National Day holiday, while demand has remained slack, and decreasing iron ore prices have weakened the support for CRC prices from the cost side,” an international trader told SteelOrbis.
During the given week, a cautious mood has prevailed among market players, while demand from downstream users and traders has been sluggish, negatively affecting the CRC market. At the same time, HRC futures prices have moved on a downtrend, exerting a negative impact on CRC prices. It is thought that CRC prices in the Chinese domestic market may edge down in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,280/mt ($596/mt) ex-warehouse, decreasing by RMB 37/mt ($5.2/mt) compared to September 27, according to SteelOrbis’ information.
As of October 11, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,718/mt ($518/mt), decreasing by RMB 49/mt ($7/mt) or down by 1.3 percent since September 27.
$1 = RMB 7.1779