Ex-China offer prices of CRC have declined sharply due to the ongoing impact from the coronavirus outbreak and the decreases observed in the local market.
At present, export offers for CRC given by major Chinese mills are at $505-515/mt FOB for late April delivery, down $20/mt on average compared to February 12. The price slump has attracted some customers and deals have been heard at $500-510/mt FOB to Southeast Asia and South America.
Currently, demand from downstream users has not released completely, though China has taken measures to boost the resumption of operations of industrial capacities. Inventory levels in the CRC market have increased, exerting a negative impact on market players’ financial positions, and so they have been willing to cut their sales prices. Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,093/mt ($584.6/mt) ew-warehouse, which is RMB 167/mt ($23.8/mt) lower as compared to February 12, according to SteelOrbis’ information.
As of February 19, HRC futures at the Shanghai Future Exchange are standing at RMB 3,405/mt ($486.4/mt), increasing by RMB 4/mt ($0.6/mt) or 0.1 percent since February 12.
$1 = RMB 7.001