China’s CRC export prices extended gains on the week Sept. 15 when mills’ offers stayed firm and some buyers caught up further with higher buying indications.
S&P Global Platts assessed SPCC grade 1 mm thick CRC at $601/mt FOB China on Sept. 15, up $14/mt week on week.
The spread between the export price of CRC and commercial-grade HRC was at $85/mt.
Chinese mills held offers stable after some strong increase seen in the previous week, for their November shipment cargoes, in line with firm domestic market.
One northeastern China-based mill offered at $605/mt FOB for coil and $610/mt FOB for sheet for November shipment, flat on the week. One eastern China mill offered $610/mt FOB, for November-December shipment, flat on the week. Another northeastern China mill offered at $620/mt FOB for November shipment.
“Some more active buying activity had been seen in the market since the previous week, after some suspension at the beginning of the month,” said a Shanghai trader.
“Buyers can accept $600/mt FOB or above, as no cheap materials available,” he said.
“Buyers in South America are still catching up. I heard some buyers can even accept $610/mt FOB level but with small quantity,” said a northern China trader. “Some mills saw quite good sales for the latest booking, he said.
In the Shanghai dealers market, Platts assessed the same CRC grade at Yuan 4,740/mt ex-stock on Sept. 15, including value added tax, down Yuan 10/mt week on week.
“CRC prices are essentially stable, as domestic demand for CRC remains healthy,” said a Shanghai trader.
New data published early September showed China's passenger vehicle vehicle sales in August were estimated at 2.18 million units, up 11.3% year on year. Vehicle sales are expected to be firm in September, the traditional peak buying season amid car exhibitions, new car launches and political support, said China Automobile Dealers Association.
-- Analyst Yuelin Dai
Source : Steel Business Briefing
