Chinese CRC market bearish
2024-04-02 08:35:20 [Print]
BEIJING (Asian Metal) 2 Apr 24 - Facing the high inventories and poor sales performance, domestic CRC traders adopt pessimistic attitudes towards the market prospect and cut prices in succession. Presently, the prevailing prices of CRC SPCC 1.0mm*1,250mm*C hover at 4,100-4,150/t (USD567-574/t) and RMB4,250-4,300/t (USD588-595/t) D/P in warehouses Tianjin and Guangzhou, down by RMB50/t (USD7/t) from last Friday. Insiders foresee decreasing prices in the following several days upon the soft demand from downstream industries.
"Though we quote RMB4,120/t (USD570/t) D/P for CRC SPCC 1.0mm*1,250mm*C, we could provide the counteroffer of RMB50/t (USD7/t) at most for firm orders, while we just accepted the concession of no more than RMB20/t (USD3/t) in January," noted a trader in Tianjin, who sold 80t of CRC at RMB4,140/t (USD573/t) last Friday. According to him, downstream plants maintain the low operating rates of around 60% at the moment, and the demand for CRC remains weak. Besides, end users keep not in a hurry in purchasing seeing the downward price trend. The trader just sold 50t of the material at RMB4,090/t (USD566/t) on Monday. He deems prices of CRC would edge down further in the forthcoming several days given the slow market.
The trader holds around 10,000t in stock for the moment, up from 6,000t in late January. With the typical monthly sales volume of 6,000t, he would sell 2,000t in April, against 3,000t in March. The trader sold about 21,000t of CRC in 2023 and 5,000t in the first quarter of 2024.
Another trader in Guangzhou confirms the inactive market. "We found it hard to conclude large deals at the moment as end users keep not in a hurry in purchasing dragged by insufficient orders for final products as well as the continuous price declines," noted the trader, adding that the market inventory remains high as mills deliver regularly boosted by the considerable profits but the consumption slows down. The trader just sold 100t of CRC SPCC 1.0mm*1,250mm*C at RMB4,270/t (USD591/t) on Monday, and last sold 100t of the material at RMB4,320/t (USD597/t) last Friday, while sold 200t a day easily in the middle of January. He predicts another price decrease of CRC in the upcoming several days on the low demand.
Based on the regular monthly sales volume of 10,000t, the trader estimates that the sales volume would achieve about 5,000t in April, in line with March. He sold about 16,000t of CRC in the first three months of 2024 and 90,000t or so in 2023. Presently, the trader holds around 3,000t in inventory, against 1,000t in the middle of March.
"Though we quote RMB4,120/t (USD570/t) D/P for CRC SPCC 1.0mm*1,250mm*C, we could provide the counteroffer of RMB50/t (USD7/t) at most for firm orders, while we just accepted the concession of no more than RMB20/t (USD3/t) in January," noted a trader in Tianjin, who sold 80t of CRC at RMB4,140/t (USD573/t) last Friday. According to him, downstream plants maintain the low operating rates of around 60% at the moment, and the demand for CRC remains weak. Besides, end users keep not in a hurry in purchasing seeing the downward price trend. The trader just sold 50t of the material at RMB4,090/t (USD566/t) on Monday. He deems prices of CRC would edge down further in the forthcoming several days given the slow market.
The trader holds around 10,000t in stock for the moment, up from 6,000t in late January. With the typical monthly sales volume of 6,000t, he would sell 2,000t in April, against 3,000t in March. The trader sold about 21,000t of CRC in 2023 and 5,000t in the first quarter of 2024.
Another trader in Guangzhou confirms the inactive market. "We found it hard to conclude large deals at the moment as end users keep not in a hurry in purchasing dragged by insufficient orders for final products as well as the continuous price declines," noted the trader, adding that the market inventory remains high as mills deliver regularly boosted by the considerable profits but the consumption slows down. The trader just sold 100t of CRC SPCC 1.0mm*1,250mm*C at RMB4,270/t (USD591/t) on Monday, and last sold 100t of the material at RMB4,320/t (USD597/t) last Friday, while sold 200t a day easily in the middle of January. He predicts another price decrease of CRC in the upcoming several days on the low demand.
Based on the regular monthly sales volume of 10,000t, the trader estimates that the sales volume would achieve about 5,000t in April, in line with March. He sold about 16,000t of CRC in the first three months of 2024 and 90,000t or so in 2023. Presently, the trader holds around 3,000t in inventory, against 1,000t in the middle of March.
