Due to the firm trend in the Chinese domestic CRC market amid relatively low inventories, ex-China offer prices have increased to $545-550/mt FOB, up $7.5/mt on average over the past two weeks. Overseas buyers’ bids have also improved, but are still at least $5/mt below current offers.
During the given week, local CRC inventories have risen slightly due to quiet activity against the backdrop of the New Year holiday. Average 1.0 mm cold rolled coil spot prices in China have moved sideways week on week at RMB 4,436/mt ($638.7/mt) ex-warehouse, according to SteelOrbis’ information.
Major Chinese steelmaker Baosteel has raised its ex-works prices for CRC by RMB 100/mt ($14.3/mt) for delivery in February, providing support for CRC prices in the spot market. However, the approaching Chinese New Year holiday (January 24-30) will negatively affect activities in the local CRC market.
As of January 8, HRC futures at the Shanghai Future Exchange are standing at RMB 3,643/mt ($498.2/mt), increasing by RMB 122/mt ($17.6/mt) or 3.5 percent since December 25.
$1 = RMB 6.945