Most ex-China offer prices of cold rolled coil (CRC) have moved sideways amid the slight fluctuating trend in local CRC prices and increasing ferrous metal futures prices, but the deal price levels have been lower as the majority of buyers have been reluctant to purchase Chinese CRC, having to bear the risks of the potential export duty.
At present, export offers for CRC given by major Chinese mills are at $920-950/mt FOB for August shipment , with the average offer prices remaining stable on average compared to June 23 amid the rising trend in ferrous metal futures prices.
A few deals have been heard at around $870-890/mt FOB, $10/mt lower than the previous week.
“The sluggish demand in the local market has affected ex-China CRC offer prices, while overseas buyers have mostly held a wait-and-see stance as regards the future prospects for the market,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have indicated slight rises amid the rising trend in HRC futures prices, though market players have been cautious as regards the future market prospects. Currently, it is in the traditional offseason, and so sellers mostly chose to sell in order to lower the pressure from tight liquidity.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 6,033/mt ($934/mt) ex-warehouse, moving up slightly by RMB 3/mt ($0.46/mt) compared to June 23, according to SteelOrbis’ information.
As of June 30, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,428/mt ($840/mt), increasing by RMB 275/mt ($42.6/mt) or 5.3 percent since June 23.
$1 = RMB 6.4601