Global CRC Offers Move Up amid Price Hike in China

Boost in China’s domestic steel demand and prices lead to hike in its CRC export offers.

Year 2015 saw the biggest collapse in global steel industry with prices of semi-finish and finished products hitting rock bottom. However, 2016 seems to bring some buoyancy in international steel circuit.

As reported by SteelMint yesterday, HRC export offers have moved up in the range of USD 10-15/MT from China and Korea.

Now even, CRC offers from China and Japan are heard to move up in the range of USD 25-30/MT and by USD 10/MT. respectively.

Current offers for 0.9 mm CRC are assessed at USD 320-330/MT, FoB China and USD 330-350/MT, FoB Japan. CRC’s export offers from India are heard at USD 315-335/MT, FoB India.

The major reason behind rise in Chinese CRC export offers is improvement in its both domestic demand and prices. As per market sources, demand from China’s white goods and automobile manufacturers have picked up since mid of Dec’15.

China’s domestic CRC offers have risen by RMB 90/MT (USD 14/MT) to RMB 2,640-2,750/MT (USD 405-422/MT) in Shanghai.

“Chinese traders are not much interested in export offers and are focusing on meeting domestic demand. They have increased export prices to check if there is any buying interest from overseas buyers at this level”, quoted a global trader dealing with Chinese flats.

However, the other side of the coin is that CISA (China Iron & Steel Association) has reported, steel prices in China would probably fall after some rises in Jan’16. This is because with upcoming Chinese lunar New Year from 7-13 Feb’16, domestic steel demand would fall, leading to subsequent rise in inventory levels.

Prices in USD/MT
Source: SteelMint Research