Ex-China CRC offer prices have moved sideways over the past week after an increase announced last week, but tradable levels have increased slightly. Market sources are still optimistic for the rest of September, though a mood of caution remains.
At present, export offers for CRC given by major Chinese mills are at $660/mt FOB for November shipment, remaining stable compared to September 7.
The tradable level of ex-China CRC offer prices has been at $640/mt FOB, moving up by $5-10/mt week on week. Some sources said that even $650/mt FOB could be achievable soon, though overall trading has not been active.
“Purchases ahead of the Mid-Autumn Day holiday bolstered CRC prices in the Chinese domestic market, while increasing HRC futures prices also exerted a positive impact on CRC prices,” an international trader told SteelOrbis.
During the given week, CRC prices in the Chinese domestic market have edged up amid the increasing trend of HRC futures prices at Shanghai Futures Exchange (SHFE). Meanwhile, downstream users were more willing to purchase ahead of the Mid-Autumn Day holiday. CRC producers’ capacity utilization rates and production outputs increased this week. It is expected that CRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,376/mt ($635/mt) ex-warehouse, rising by RMB 6/mt ($0.9/mt) compared to September 7, according to SteelOrbis’ information.
As of September 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,800/mt ($550/mt), increasing by RMB 39/mt ($5.6/mt) or 1.0 percent since September 7.
$1 = RMB 6.9116
