Ex-China cold rolled coil (CRC) prices have moved down over the past week following the further downward trend in the hot rolled coil (HRC) segment coupled with new declines in HRC futures prices after some recovery seen at the beginning of this week.
At present, export offers for CRC given by major Chinese mills are at around $602-610/mt FOB, for May shipment, moving down by $29/mt on average over the past week. Meanwhile, the tradable levels for ex-China CRC have been heard at $602-605/mt FOB, against $620-630 FOB last week.
During the given week, CRC prices in the Chinese domestic market have moved down amid the decreases in HRC futures prices. Currently, bearish sentiments prevail among market players, exerting a negative impact on CRC prices. Recently, the China Iron and Steel Association (CISA) urged steel producers to curb their outputs, aiming to bolster steel prices, which will positively affect market prices. However, the pressure from tight liquidity and relatively high inventories is unlikely to ease in the short term.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,040/mt ($569/mt) ex-warehouse, decreasing by RMB 47/mt ($6.6/mt) compared to March 27, according to SteelOrbis’ information.
As of April 3, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,659/mt ($515/mt), decreasing by RMB 58/mt ($8.2/mt) or 1.6 percent since March 27, while down 0.79 percent compared to the previous trading day, April 2.
$1 = RMB 7.0949