Ex-China offer prices of cold rolled coil (CRC) have edged up further in the past week amid increasing iron ore prices, rising ferrous metal futures prices and surging local CRC prices.
At present, export offers for CRC given by major Chinese mills are at $745-750/mt FOB for late March shipment, moving up by $40/mt on average compared to December 9. Reference deal prices have been heard at $730-740/mt FOB, up $40/mt compared to the previous week.
During the given week, CRC prices in the Chinese domestic market have indicated sharp rises amid the high levels of iron ore prices and increasing HRC futures prices. Meanwhile, tight supply of CRC has bolstered prices. Major Chinese steelmaker Hesteel has raised its local base prices for cold rolled coil (CRC) by RMB 600/mt ($92/mt) for delivery in January next year, pushing up the cost of ordering CRC for traders and so they have become more cautious in concluding purchases and are unwilling to build up stocks. It is expected that CRC prices in the Chinese domestic market will edge up further in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,533/mt ($847/mt) ex-warehouse, rising by RMB 257/mt ($39/mt) compared to December 9, according to SteelOrbis’ information.
As of December 16, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,418mt ($676/mt), increasing by RMB 143/mt ($22/mt) or 3.35 percent since December 9.
$1 = RMB 6.5355