Ex-China offer prices of cold rolled coil (CRC) have moved up in the past week amid support from the local market.
At present, export offers for CRC given by major Chinese mills are at $510-520/mt FOB for late August, moving up by $7.5/mt on average compared to June 24.
The reference deal prices for most mills have been heard at $495-505/mt FOB to Southeast Asia and South America, up from mainly $480-490/mt FOB last week. At the same time, some sources said that $490/mt FOB is still achievable. “Consumption of CRC has been less affected by the rainy weather and floods, which bolstered ex-China CRC prices,” a trader said.
During the given week, booking prices for CRC from steelmakers have increased further, and so orders from traders and downstream users have been slower, also amid the rainy weather and floods in China. Some specifications of CRC have been in short supply, which has bolstered prices to some extent. At the same time, inventory of CRC has decreased slightly, providing support for prices. It is thought that CRC prices will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,126/mt ($584/mt) ex-warehouse, remaining stable compared to June 24, according to SteelOrbis’ information.
As of July 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,567/mt ($505/mt), decreasing by RMB 37/mt ($5.2/mt) or 1.0 percent since June 24.
$1 = RMB 7.071