Chinese CRC traders pessimistic
2024-03-14 08:35:54 [Print]
BEIJING (Asian Metal) 14 Mar 24 - Discouraged by the downward price trend as well as the slow market, domestic CRC traders show little confidence in the market prospect and worried about a further price decline. At present, the prevailing prices of CRC SPCC 1.0mm*1,250mm*C hover at RMB4,520-4,570/t (USD629-636/t) and RMB4,440-4,490/t (USD618-625/t) D/P in warehouses Shanghai and Guangzhou, with the former stable and the latter down by RMB40/t (USD6/t) from Tuesday. Insiders believe CRC prices would edge down in the forthcoming several days given the bearish atmosphere in the market.
"Both traders end users keep inactive in purchasing dragged by the downward price trend of raw materials, waiting for a further price drop of CRC. After tough negotiations, we just sold 1,000t of CRC SPCC 1.0mm*1,250mm*C at RMB4,570/t (USD636/t) D/P on Wednesday, while sold 3,000t a day in January," noted a trader in Shanghai, quoting RMB4,570/t (USD636/t) D/P without concession for CRC SPCC 1.0mm*1,250mm*C, while insisted on RMB4,650/t (USD647/t) late last week. According to him, most end users reported shrinking orders for final products. However, steel mills tend to firm EXW prices seeing the losses, which meant traders suffer losses and face rising capital pressures. Adopting pessimistic attitude towards the market prospect, the trader deems prices of CRC would go down in the forthcoming several days.
Holding around 30,000t in inventory, the trader would sell 30,000t in March, against 15,000t in February. Based on the typical monthly sales volume of 60,000t, he roughly sold 500,000t of CRC in 2023.
Dragged by the poor sales performance, another trader in Guangzhou cut prices further on Wednesday after the markdown of around RMB100/t (USD14/t) in the past week, quoting RMB4,440/t (USD618/t) D/P for CRC SPCC 1.0mm*1,250mm*C at the moment. "The market inventory keeps rising, while the demand from downstream industries improves slowly, together with the downward price trend of raw materials, weakening the confidence of participants to a large extent," explained the trader, who sold 200t of CRC at RMB4,440/t (USD618/t) on Wednesday. In the meantime, he pointed out that though prices of HRC rebounded slightly on Tuesday, those of CRC failed to follow suit due to the slow market. The trader forecasts another price decline of CRC in the following several days seeing the eagerness of cutting stocks of traders.
With the regular sales volume of 10,000tpm, the trader might sell about 5,000t of CRC in March, against 3,000t in February. He recorded the sales volume of approximately 90,000t in 2023, holding about 1,000t in inventory right now.
"Both traders end users keep inactive in purchasing dragged by the downward price trend of raw materials, waiting for a further price drop of CRC. After tough negotiations, we just sold 1,000t of CRC SPCC 1.0mm*1,250mm*C at RMB4,570/t (USD636/t) D/P on Wednesday, while sold 3,000t a day in January," noted a trader in Shanghai, quoting RMB4,570/t (USD636/t) D/P without concession for CRC SPCC 1.0mm*1,250mm*C, while insisted on RMB4,650/t (USD647/t) late last week. According to him, most end users reported shrinking orders for final products. However, steel mills tend to firm EXW prices seeing the losses, which meant traders suffer losses and face rising capital pressures. Adopting pessimistic attitude towards the market prospect, the trader deems prices of CRC would go down in the forthcoming several days.
Holding around 30,000t in inventory, the trader would sell 30,000t in March, against 15,000t in February. Based on the typical monthly sales volume of 60,000t, he roughly sold 500,000t of CRC in 2023.
Dragged by the poor sales performance, another trader in Guangzhou cut prices further on Wednesday after the markdown of around RMB100/t (USD14/t) in the past week, quoting RMB4,440/t (USD618/t) D/P for CRC SPCC 1.0mm*1,250mm*C at the moment. "The market inventory keeps rising, while the demand from downstream industries improves slowly, together with the downward price trend of raw materials, weakening the confidence of participants to a large extent," explained the trader, who sold 200t of CRC at RMB4,440/t (USD618/t) on Wednesday. In the meantime, he pointed out that though prices of HRC rebounded slightly on Tuesday, those of CRC failed to follow suit due to the slow market. The trader forecasts another price decline of CRC in the following several days seeing the eagerness of cutting stocks of traders.
With the regular sales volume of 10,000tpm, the trader might sell about 5,000t of CRC in March, against 3,000t in February. He recorded the sales volume of approximately 90,000t in 2023, holding about 1,000t in inventory right now.
