Ex-China cold rolled coil (CRC) prices have edged up slightly over the past week following higher offers for local CRC and more hikes seen in HRC futures prices.
At present, export offers for CRC from China are in a range of around $515-520/mt FOB, for August shipment, moving up by $5/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $510-515/mt FOB, versus the range of $505-510/mt FOB recorded last week.
During the given week, the average CRC prices in the Chinese domestic market have moved up amid increasing HRC futures prices. In mid-July, some vehicle producers, including Chang’an and Great Wall Motor (GWM), have started holidays due to the hot weather conditions, exerting a negative impact on the CRC market. Inventory of CRC is expected to increase, which will weaken the support for prices. It is thought that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,413/mt ($477/mt) ex-warehouse, increasing by RMB 53/mt ($7.4/mt) compared to July 9, according to SteelOrbis’ information.
As of July 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,253/mt ($455/mt), increasing by RMB 63/mt ($8.8/mt) since July 9, while decreasing by 0.31 percent compared to the previous trading day, July 15.
$1 = RMB 7.1526