China’s CRC export prices rose strongly in the week to Aug. 18 to a 15-month high, in line with stronger raw material prices, rise in buying indications and higher Chinese domestic market.

          S&P Global Platts assessed SPCC grade 1 mm thick CRC at $560/mt FOB China on Aug. 18, up $17/mt week on week.

          The spread between the export price of CRC and commercial-grade HRC was at $51/mt, widening $6/mt on the week.

          With some buyers continuing to accept higher prices, Chinese mills continued to lift prices and boosted the export offers to similar level as domestic sales prices.

          One Northeastern China-based mill offered at $570/mt FOB for coil and $575/mt FOB for sheet for November-shipment, up $15/mt on the week. One eastern China mill lifted offer for CRC by $10/mt to $565/mt FOB, for October shipment.

           “Mills’ export allocations for October-shipment were not much left now, after some active sales last week, and had seen the latest dealing level at $560/mt FOB,” said an eastern China trader.

          Some mills outside of China had limited quantity due to the production cuts and they reduced their export allocations, so overseas buyers with bullish outlook turned to secure more cargoes from China, he said.

           “Buying activity from South America is quite strong lately. But the problem is mills are almost selling out October-shipment,” said a northern China trader.

          In the Shanghai dealers market, S&P Global Platts assessed the same CRC grade at Yuan 4,500/mt ($649/mt) ex-stock on Aug. 18, including value added tax, up Yuan 70/mt week on week and marked the highest point since early November 2018.

          On the same day, the spot price of Q235 5.5 mm HRC in Shanghai was assessed at Yuan 4,100/mt ex-stock, including value-added tax, the highest point since end October 2018.

-- Analyst Yuelin Dai