Ex-China offer prices of cold rolled coil (CRC) have moved mainly sideways in the past week, though sentiment has remained bearish amid the slightly declining trend in local CRC prices and some low-priced offers from traders. But most Chinese mills have been unwilling to cut their prices ahead of the long holiday.
At present, export offers for CRC given by major Chinese mills are at $740-790/mt FOB for April shipment, with the average offer prices moving up by $10/mt compared to January 20. This happened due to the higher upper end of the range as these mills, whose allocations are tight, have decided to show their unwillingness to export. Reference deal prices from mills have been heard at $730-750/mt FOB, in line with the previous week, though traders have been able to deal at $720/mt FOB.
During the given week, downstream users in China have been gradually leaving the market because of the upcoming holiday, resulting in quiet activities in the CRC market. However, market players have been unwilling to adjust prices ahead of the Chinese New Year holiday. Inventory levels have risen slightly, which will exert a negative impact on the CRC market.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,320/mt ($823/mt) ex-warehouse, decreasing by RMB 16/mt ($2.5/mt) compared to January 20, according to SteelOrbis’ information.
As of January 27, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,521/mt ($699/mt), increasing by RMB 108/mt ($16.7/mt) or 2.4 percent since January 20.
$1 = RMB 6.4664
