Ex-China cold rolled coil (CRC) prices have moved sideways over the past week since, even though there has been some slight improvement in the HRC segment, supply of CRC is still on the higher side compared to demand.
More specifically, ex-China CRC offer prices from mills are at $570-575/mt FOB this week, moving sideways on average week on week, while the tradable levels for ex-China CRC have been heard at $565-570/mt FOB. “The export market is similar and there are some trades of CRC to the South American market at discounts,” a Chinese trader said.
During the given week, CRC prices in the Chinese domestic market have moved up amid slightly increasing HRC futures prices. In June, which is part of the traditional off-season for business, downstream users have been unwilling to conclude purchases of CRC, exerting a negative impact on prices. The relatively high raw material prices have bolstered CRC prices from the cost side. It is expected that CRC prices in the Chinese domestic market will move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,690/mt ($541/mt) ex-warehouse, increasing by RMB 37/mt ($5.4/mt) week on week, according to SteelOrbis’ information.
As of June 3, HRC futures at Shanghai Futures Exchange are standing at RMB 3,386/mt ($492/mt), increasing by RMB 23/mt ($3.4/mt) or 0.7 percent since May 27, while decreasing by 0.35 percent compared to the previous trading day, June 2.
$1 = RMB 6.8184
