China’s CRC export prices extended their upward trend in the week to Dec. 1, as mills continued to raise offers amid bullish domestic market and higher HRC prices.
S&P Global Platts assessed SPCC grade 1 mm thick CRC at $668/mt FOB China on Dec. 1, up $18/mt week on week.
The spread between the export price of CRC and commercial-grade HRC was at $78/mt, narrowing $2/mt on the week.
Mills raised offers for CRC again strongly when they lifted HRC offers, although buyers were heard yet to catch up. "Offering level has surged to $680-$690/mt FOB. None of my clients can accept now," said a northern China trader.
A major northeastern China based mill raised export offers by $20/mt on the week to $690/mt and $695/mt FOB China for CRC and CR sheet, respectively for February shipment, according to a mill source. An eastern China mill raised offer by $5/mt to $690/mt FOB for February shipment.
It’s not easy to negotiate price down now, as mills still have half a month to collect their orders and they would try to support the prices in the near term, said an eastern China trader. In addition, mills were firm on their offers as domestic sales stayed strong, and expectation for downstream sectors remained positive, he said.
In the Shanghai dealers market, S&P Global Platts assessed the same CRC grade at Yuan 5,200/mt ($791/mt) ex-stock, including value added tax, up Yuan 50/mt week on week.
Meanwhile, Platts assessed monthly SPCC grade 1 mm thick CRC at $688/mt CFR East Asia, up $60/mt on the month.
Separately, Platts assessed 1 mm thick DX51D HDG with 120 g/sq m zinc coating at $690/mt FOB China on Dec. 1, up $55/mt on the month.
The 1 mm thick DX51D HDG in the Shanghai spot market was assessed at Yuan 5,200/mt, with 13% VAT, up Yuan 300/mt month on month.
-- Analyst Yuelin Dai