China’s CRC export prices increased in the week to Feb. 23, amid a strong rally in the broader domestic steel market, including HRC, after the market resumed activities following the week-long Lunar New Year holidays.
S&P Global Platts assessed SPCC grade 1 mm thick CRC at $769/mt FOB China on Feb. 23, up $25/mt week on week. The spread between the export price of CRC and SS400 grade HRC was at $89/mt, widening $2/mt over the same period.
A northeast China mill offered at $790/mt FOB for May shipment and up $10/mt from the previous offer early February. Another north China mill was offering $780/mt FOB also for May shipment.
“Buyers are still waiting and hesitating as Chinese prices rose fast lately. But mills are not in a hurry, as the shipments are quite far. Mills would put most allocations for domestic market, which will see improved demand,” said a Chinese trader. “I heard one eastern China mill got good domestic bookings lately. Just need more time for overseas buyers to catch up,” said a second Chinese trader.
In the Shanghai dealers market, Platts assessed the same CRC grade at Yuan 5,620/mt ex-stock, including VAT, up Yuan 170/mt week on week.
Meanwhile, Platts assessed monthly SPCC grade 1 mm thick CRC at $794/mt CFR East Asia, up $29/mt on the month.
Separately, Platts assessed 1 mm thick DX51D HDG with 120 g/sq m zinc coating at $788/mt FOB China on Feb. 23, up $20/mt on the month.
Mills updated their offers in the first week after the holidays, with prices rising to $795-$825/mt FOB for 120 g/sq equivalent for April shipment, in line with HRC and CRC, market sources said. Tradable levels for mills were at $790-$810/mt FOB depending on mills, market sources said. “Buyers haven’t been back to the market but they are expected to accept the prices later given the bullish outlook,” said a Shanghai trader.
The 1 mm thick DX51D HDG in the Shanghai spot market was assessed at Yuan 5,880/mt on Feb. 23, with 13% VAT, up Yuan 280/mt month on month.
--Steel Business Briefing---
