Ex-China offer prices of cold rolled coil (CRC) have edged down in the past week following a slight declining trend in the previous week. Weaker prices and slowing trading activity in the local market in China have exerted strong pressure on export prices. Moreover, prices for HRC have also continued to go down in China.
At present, export offers for CRC given by major Chinese mills are at $580-600/mt FOB for late November, edging down by $5/mt on average compared to September 16. The reference deal prices are at $580-590/mt FOB, to South America and the Middle East.
Decreasing CRC prices in the local market and declining futures prices have negatively affected market sentiment. Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,667/mt ($687/mt) ex-warehouse, down RMB 33/mt ($5/mt) compared to September 16, according to SteelOrbis’ information. The slack demand from downstream users has put pressure on prices in China. Though inventory of CRC is at relatively low levels, the slow sales activities will likely increase the pressure from inventory. It is thought that CRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week ahead of China’s long National Day holiday (October 1-8).
As of September 23, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,666/mt ($539/mt), decreasing by RMB 23/mt ($3.4/mt) or 0.6 percent since September 16.
$1 = RMB 6.7986