Although some recovery has been seen in HRC futures prices in China on Wednesday, June 26, it has failed to support Chinese cold rolled coil (CRC) offers. Besides, ex-China CRC prices have moved down over the past week also amid the decreasing trend in the local CRC market.
At present, export offers for CRC given by major Chinese mills are at around $580-590/mt FOB, for August shipment, moving down by $20/mt on average week on week. Meanwhile, the tradable levels for ex-China CRC have been heard at $575-590/mt FOB, decreasing by $15/mt compared to last week.
During the given week, CRC prices in the Chinese domestic market have declined amid the decreases in HRC futures prices. Coming towards the end of June, traders’ inventories of CRC are at relatively high levels, exerting a negative impact on market sentiments. Due to the high temperatures in northern China and heavy rainfalls in eastern and southern China, demand for CRC has been slack, negatively affecting prices. It is thought that CRC prices in the Chinese domestic market will likely edge down further in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,907/mt ($548/mt) ex-warehouse, decreasing by RMB 43/mt ($6/mt) compared to June 19, according to SteelOrbis’ information.
As of June 26, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,753/mt ($527/mt), decreasing by RMB 33/mt ($1/mt) or 0.9 percent since June 19, while up 0.62 percent compared to the previous trading day, June 25.
$1 = RMB 7.1248