Ex-China CRC prices have moved down slightly over the past week due to weak sentiment and poor demand. However, the offered volumes have also declined, and so no significant price decrease is unlikely in the near future.
At present, export offers for CRC given by major Chinese mills are at $1,015-1,025/mt FOB for November shipment, with average prices decreasing by $10/mt compared to September 22. The tradable level is heard to be at $1,005-1,015/mt FOB, but trading activity has remained limited.
“Some steelmakers have been required not to export CRC, resulting in few offer prices being heard in the market,” an international trader told SteelOrbis.
During the given week, China’s domestic CRC prices have moved sideways amid decreasing HRC futures prices and supply shortages due to production restrictions aimed at reducing energy consumption. Ahead of the long National Day holiday (October 1-7), traders think that demand for CRC is unlikely to indicate a big improvement, and so CRC prices may fluctuate within a limited range in the near future.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,433/mt ($995/mt) ex-warehouse, moving sideways compared to September 22, according to SteelOrbis’ information.
As of September 29, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,697/mt ($881/mt), decreasing by RMB 64/mt ($9.9/mt) or 1.11 percent since September 22.
$1 = RMB 6.4662