It is reported that Chinese cold rolled steel coil price has seen further increase following the step of rebound in HRC price. It is also a result of better supply and demand balance.
As per report, on Shanghai market, 1.0 millimeter CR sheet by Anshan steel goes at CNY 4450 per tonnes up CNY 150 per tonnes from last Friday. That for 1.2 millimeters to 2.0 millimeters material jumps by CNY 180 per tonnes to CNY 4330 per tonnes. While that for 1.0 CR coil by Maanshan steel goes at CNY 4250 per tonnes a sharp increase of CNY 130 per tonnes.
Export offer for DC01 1.0 millimeters CRC goes at around USD 600 per tonnes to USD 620 per tonnes fob up, stable with last week. Most exporters believe it hard to concluded business at the current level. However, stock material exports are still workable at some discounted levels.
CIS countries are exporting cheaper CRC to China and such materials would arrive in the early period of Q1 2009. Ukraine based Zap is said to be quoting 08kp 0.5 millimeter to 1.0 millimeter CRC at USD 495 per tonnes to USD 500 per tonnes CFR . Former contract prices are reported to be at around USD 480 per tonnes CFR.
Now CRC imports into China would be levied a 5% import tariff and such a price level is actually equivalent or quite close to current local market level. However, those who have placed orders at lower prices are expected to gain on increasing domestic prices.
Under such circumstances, CRC exports probably would become more difficult and whether there are more imports is dependent on how steel makers adjust their output. Generally speaking a substantial increase in supply by steel makers would ruin the upturn.