Ex-China cold rolled coil (CRC) prices have remained stable over the past week as the local gains have been insufficient to push prices in the export market. Even though the mood has improved since last week, expectations are still uncertain.
At present, export offers for CRC from China are in a range of around $510-515/mt FOB, for August shipment, moving sideways on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $505-510/mt FOB, even though most mills are targeting $510-515/mt FOB at the lowest.
During the given week, the average CRC prices in the Chinese domestic market have edged up amid the improved market sentiments due to the news of production cuts in Tangshan, the major steelmaking hub in northern China. Typhoon Danas landed in Zhejiang Province, negatively affecting the transportation of CRC supplies, reducing the supply to the spot market and bolstering prices to a certain degree. However, demand for CRC from downstream users has remained sluggish due to the traditional off-season.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,360/mt ($470/mt) ex-warehouse, increasing by RMB 17/mt ($2.4/mt) compared to July 2, according to SteelOrbis’ information.
As of July 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,190/mt ($446/mt), decreasing by RMB 1/mt ($0.14/mt) since July 2, while increasing by 0.09 percent compared to the previous trading day, July 8.
$1 = RMB 7.1541