Ex-China CRC prices have moved up sharply over the past week, following the cancellation of the export tax rebate. The market has been hit hard recently not only by rising offers, but also by weak demand and ongoing uncertainties in exports, linked to the possible introduction of export duties at 10-25 percent for flat steel in China, and it is still unclear if CRC trading will remain limited or not.
At present, export offers for CRC given by major Chinese mills are at $1,070-1,090/mt FOB for October shipment, with the average prices $85/mt higher compared to August 4.
“Traders and steelmakers have raised their ex-China offer prices for cold rolled coil (CRC), aiming to deal with the cancellation of the tax rebate, while offer prices have still been in chaos to some extent,” an international trader told SteelOrbis.
During the given week, domestic CRC prices in China have risen slightly amid increasing HRC futures prices and improved sentiments among market players. Demand for CRC has remained slack in the traditional offseason, while the worsening Covid-19 pandemic situation has also negatively affected demand. It is expected that CRC prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,433/mt ($992/mt) ex-warehouse, moving up by RMB 20/mt ($3.1/mt) compared to August 4, according to SteelOrbis’ information.
As of August 11, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,901/mt ($910/mt), increasing by RMB 48/mt ($7.4/mt) or 0.82 percent since August 4.
$1 = RMB 6.4831