During the past week, the Chinese cold rolled coil (CRC) market has not seen much significant change in prices, with just slight fluctuations registered. The average CRC prices in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
1.0 mm x 1,250 mm x C |
SPCC |
5,533 |
+6 |
841 |
+1 |
|
CRS |
1.0 mm x 1,250 mm x 2,500 mm |
SPCC |
5,597 |
-6 |
851 |
-1 |
As of March 30, prices of ST12 1.0 mm × 1,250 mm × C CRC stand at RMB 5,520/mt ($839/mt), RMB 5,550/mt ($843/mt) and RMB 5,530/mt ($840/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, prices of ST12 1.0 mm × 1,250 mm × 2,500 mm CRS stand at RMB 5,540/mt ($842/mt), RMB 5,700/mt ($866/mt) and RMB 5,550/mt ($843/mt) respectively in the Shanghai, Tianjin and Lecong markets. All the above prices include 17 percent VAT (US$1 = RMB 6.58).
Traders are generally maintaining a wait-and-see approach to the market. Upward or downward price adjustments do not appear to have much impact in increasing activity on the end-users' side. In the meantime, there is an expectation that the central government will raise interest rates, and so traders in the CRC market tend to be cautious. During the past week, the prices of iron ore, coking coal and coke started to rebound, and these increases may eventually provide support for prices in the finished steel markets.
On March 25, aggregate cold rolled coil inventory in the main Chinese cities totaled 1,553,310 mt, down 4,630 mt week on week or up 219,560 mt year on year. CRC inventory in the main Chinese cities was 16 percent higher on year-on-year basis.
Although CRC inventories have decreased somewhat in China, market demand has still not been released due in part to shortages of funds.