Ex-China cold rolled coil (CRC) prices have moved up sharply over the past week given the price rises seen in the local market after China issued stimulus policies to boost the economy and the financial markets.
At present, export offers for CRC given by major Chinese mills are at around $580-600/mt FOB, for December shipment, against $565-570/mt FOB last week. Meanwhile, the tradable levels for ex-China CRC have been heard at $580/mt FOB, versus $565/mt recorded last week.
During the given week, CRC prices in the Chinese domestic market have seen sharp increases in the wake of the government’s stimulus policy announcements. Meanwhile, there has been some tightness in CRC supplies, which has bolstered prices firmly. Ahead of the long National Day holiday, some downstream users had built up their CRC stocks, exerting a positive impact on prices. However, on October 9, China’s financial markets indicated sharp declines following the previous continuous rises, weakening market sentiments to a certain degree. On October 10, major Chinese steelmaker Baosteel raised its ex-works prices for CRC by RMB 550/mt ($78/mt) for delivery in November, providing solid support for market sentiments. It is thought that CRC prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,147/mt ($587/mt) ex-warehouse, increasing by RMB 700/mt ($99/mt) compared to September 25, according to SteelOrbis’ information.
As of October 10, HRC futures at Shanghai Futures Exchange are standing at RMB 3,578/mt ($506/mt), increasing by RMB 226/mt ($32/mt) or 6.7 percent since September 26, while down 0.89 percent compared to the previous trading day, October 9.
$1 = RMB 7.0742