China’s CRC export prices continued its upward trend on the week on July 21, due to higher offers by mills in line with rising HRC prices.

          S&P Global Platts assessed SPCC grade 1 mm thick CRC at $510/mt FOB China on July 21, up $7/mt week on week.

          The spread between the export price of CRC and commercial-grade HRC was at $47/mt, widening $1/mt week on week.

          Chinese mills raised offers over July 20-21 again due to the rising HRC prices. One northeastern China-based mill offered at $530/mt FOB for coil and $535/mt FOB for sheet for September shipment, up $5/mt week on week. One eastern China mill lifted offer for CRC by $5/mt at $535/mt FOB, for September shipment.

          Mills at the moment were reluctant to sell less than $515-$520/mt FOB, because CRC prices had already been too low to cover the cost of HRC, traders said.

          The overall export activity remained lukewarm, as the recovery in demand globally was slow and the Chinese market was much stronger than overseas markets, market sources said.

          Buying activity from South Korea remained slow due to low domestic price in the country, and buyers’ indication remained at $500/mt CFR level, said a northern China trader. But some buyers from other regions such as South America were picking up modestly, and some deals with small quantity concluded at $505-$510/mt FOB in the recent week, said an eastern China trader.

          It is expected that CRC export offers will remain firm in the short term, as long as HRC prices continue to hold at current level.

          In the Shanghai dealers market, Platts assessed the same CRC grade at Yuan 4,270/mt ($611/mt) ex-stock on July 21, including value added tax, up Yuan 20/mt week on week.

          There will be limited room for CRC prices to go down in the spot market, due to high purchasing cost from mills, said a Shanghai trader.

-- Analyst Yuelin Dai