Ex-China CRC offer prices have edged up slightly over the past week amid signs of a rebounding trend in the local market and higher HRC futures prices. Nevertheless, as demand has not supported this price increase so far, the real tradable level has continued to go down.
At present, export offers for CRC given by major Chinese mills are at $840-850/mt FOB for July shipment, edging up by $5/mt compared to May 25. Smaller mills can provide $815-820/mt FOB.
The tradable level of ex-China CRC by traders or smaller mills has been at $800-820/mt FOB, down by $10-30/mt over the past week.
“The rebounding trend in HRC futures prices has boosted sentiment in the CRC market, while market players are optimistic towards the prospects for the future CRC market following production resumptions in Shanghai,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have seen slight rises amid the increases in HRC prices and rising HRC futures prices. Meanwhile, the inventory of CRC has decreased, also exerting a positive impact on the mood. Moreover, China issued several policies to boost economic development, especially following the lifting of the lockdown in Shanghai. It is thought that CRC prices in the Chinese domestic market will likely increase in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,313/mt ($797/mt) ex-warehouse, moving up by RMB 13/mt ($2.0/mt) compared to May 25, according to SteelOrbis’ information.
As of June 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,816/mt ($722.6/mt), rising by RMB 143/mt ($21.5/mt) or 3.1 percent since May 25.
$1 = RMB 6.6651
