Ex-China CRC prices moved down sharply by $50/mt over the past week as the sentiment in the local market has remained bearish and sellers have been trying to push volumes in the export market.
At present, export offers for CRC given by major Chinese mills are at $875-885/mt FOB for January shipment, with the average prices moving down by $50/mt compared to that on November 10. “Since ferrous metal futures prices have indicated continuous downtrend, bearish sentiments prevailed among market players in the CRC market, which dragged down ex-China CRC offers,” an international trader told SteelOrbis.
Moreover, traders from China have been also aggressive and some of them have been ready to negotiate at even $850/mt FOB. The enquiries from buyers have increased, and some deals are expected shortly.
During the given week, CRC prices in the Chinese domestic market have indicated big declines amid the decreasing ferrous metal futures prices. Meanwhile, demand for CRC has remained slack, while downstream users have been unwilling to conclude purchases. It is thought that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,453/mt ($853/mt) ex-warehouse, moving down by RMB 110/mt ($17/mt) compared to November 10, according to SteelOrbis’ information.
As of November 17, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,450/mt ($696/mt), decreasing by RMB 13/mt ($2.0/mt) or 0.29 percent since November 10.
$1 = RMB 6.3935