In the past week, cold rolled coil (CRC) prices in the Chinese market continued to decline even sharper than the week before. 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) |
1.0mm*1250*C |
SPCC |
5403 |
-54 |
847 |
-8 |
|
CRS |
1.0mm*1250*2500 |
SPCC |
5487 |
-46 |
860 |
-7 |
of September 28, the prices of ST12 1.0mm*1250*C CRC in Shanghai, Tianjin and Lecong are respectively RMB 5,460/mt ($856mt), RMB 5,250/mt ($823/mt) and RMB 5,500/mt ($862/mt). For ST12 1.0mm*1250*2500 CRS, prices stand at RMB 5,510/mt ($864/mt), RMB 5,350/mt ($839/mt) and RMB 5,600/mt ($878/mt) in the abovementioned cities. All prices include 17 percent VAT.
In China where rebar and hot rolled coil (HRC) markets keep softening, as the downstream product of HRC, CRC is negatively influenced, losing the firm state with slower transaction. Traders are observed to remain cautious about the situation.
Demand for cold rolled coils is weak, with inventory replenishing activities slow, except for certain sizes that are not highly available. Furthermore market activity is low and traders are having difficulty to sell material. Also due to regulations in the country, market capital is getting tighter, putting additional pressure on the traders. On top of all these, along with the freight rates, raw material prices are also stepping back, lacking the strength to support the steel prices.
In view of international economic situation and above factors, traders in the Chinese market currently cannot find much to remain optimistic about the future of the market. Therefore Chinese cold rolled coil market is facing great pressure, and prices are expected to continue downward trend next week.
$1 = RMB 6.38