Ex-China CRC prices bolstered by appreciation of Chinese currency

Wednesday, 15 January 2020 15:42:13 (GMT+3)   |   Shanghai
       

Due to bullish sentiments amid rising ex-China hot rolled coil (HRC) offer prices to which the appreciation of the Chinese currency has contributed, ex-China offer prices of cold rolled coil (CRC) have increased to $550-560/mt FOB, up $7.5/mt on average over the past week. At the same time, deals have been done at $545-550/mt FOB to the Middle East and Southeast Asia, supporting overall sentiments in the market.

During the given week, local CRC inventories have continued to rise due to the approaching Chinese New Year holiday. Shipments from steelmakers have increased, easing the supply shortage in the CRC market, and thus exerting a negative impact on CRC prices. Average 1.0 mm cold rolled coil spot prices in China have edged down by RMB 13/mt ($1.9/mt) week on week to RMB 4,423/mt ($642.4/mt) ex-warehouse, according to SteelOrbis’ information.

Major Chinese steelmaker Anshan Iron and Steel has raised its ex-works prices for CRC by RMB 50/mt ($7.3/mt) for delivery in February, providing support for CRC prices in the spot market, though Liaoning Province-based Benxi Iron and Steel has kept its prices for CRC stable for delivery in February. However, most market players will exit the market by the end of this week, which will negatively affect the CRC market.

As of January 15, HRC futures at the Shanghai Future Exchange are standing at RMB 3,575/mt ($519.2/mt), decreasing by RMB 68/mt ($9.9/mt) or 1.9 percent since January 8. 

$1 = RMB 6.885


Similar articles

Ex-India HDG and CRC prices edge down, trade remains in doldrums

28 Mar | Flats and Slab

Ex-China CRC offer prices fail to recover amid futures price drop

27 Mar | Flats and Slab

CRC consumption in Mexico up 23.4 percent in January

26 Mar | Steel News

CRC import price offers stable in Brazil

25 Mar | Flats and Slab

Indian CRC prices stable amid thin trading and negative manufacturing outlook

25 Mar | Flats and Slab

Stocks of main finished steel products in China down 0.6 percent in mid-March

25 Mar | Steel News

US flats source believe HRC prices are “at or near the bottom”

22 Mar | Flats and Slab

Romania’s sole flats mill cuts HRC prices, raises HDG and PPGI prices

22 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 12, 2024

21 Mar | Flats and Slab

Turkey’s coated steel export prices weaken

20 Mar | Flats and Slab