Ex-China prices of cold rolled coil (CRC) have mainly moved sideways this week despite the declining trend in local CRC prices, the downtrend in futures prices and the big decreases in iron ore prices. As a result, buying activity in the export market has been weak and the outlook is not as optimistic as last week.
At present, export offers for CRC given by major Chinese mills are at $820-840/mt FOB for May shipment, with the average offer prices moving sideways on average compared to March 3. The reference deal prices have been heard at $810-820/mt FOB for Southeast Asia and South America, up slightly by $5/mt on average since last week. Overall trading activity has been weak.
“The overall downtrend in ferrous metal futures prices has exerted a negative impact on market players’ sentiments and dragged down local CRC prices, while exporters have chosen to hold their offer prices stable,” an international trader told SteelOrbis.
During the given week, domestic CRC prices have indicated big declines amid the sharp decreases in iron ore prices and HRC futures prices. Inventory of CRC has risen slightly, while downstream users have been unwilling to conclude purchases at the relatively high prices.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 5,596/mt ($860/mt) ex-warehouse, moving down by RB 104/mt ($16/mt) compared to March 3, according to SteelOrbis’ information.
As of March 10, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,818/mt ($740/mt), decreasing by RMB 208/mt ($32/mt) or 4.14 percent since March 3.
$1 = RMB 6.5102