Chinese CRC market slow
2024-04-08 08:20:09 [Print]
BEIJING (Asian Metal) 8 Apr 24 - The domestic CRC market performs inactively after the Tomb Sweeping Day holiday (April 4-6), and prices go down further. The current mainstream prices of CRC SPCC 1.0mm*1,250mm*C stand at RMB4,230-4,280/t (USD585-592/t) D/P both in Guangzhou and Shanghai, down by RMB20/t (USD3/t) and RMB50/t (USD7/t) from Wednesday. Insiders foresee another price decrease in the forthcoming several days upon the dim market.
"Though we quote RMB4,280/t (USD592/t) D/P for CRC SPCC 1.0mm*1,250mm*C, we could accept the price as low as RMB4,230/t (USD585/t) for firm orders discouraged by the poor sales performance," noted a trader in Guangzhou, who just sold 500t of the material at RMB4,230/t (USD585/t) on Sunday, and last sold 700t at RMB4,250/t (USD588/t) on Wednesday, while the daily sales volume reached 1,000t in early January. According to him, downstream plants maintain low operating rates due to the insufficient orders for final products, and thus the demand for CRC remains soft. Besides, the market inventory keeps rising due to the full production of steel mills, while weakens the confidence of market participants to some degree. The trader deems prices of CRC would edge down further in the coming several days.
Holding around 30,000t in stock, doubling that in January, the trader might sell 12,000t of HRC in April, similar to March. Based on the regular monthly sales volume of 15,000t, he recorded the sales volume of around 30,000t in the first three months of 2024.
"Regular clients keep inactive in purchasing dragged by insufficient orders for final products. We received several inquiries on Sunday, but did not conclude any deals, and last sold 50t of CRC at RMB4,280/t (USD592/t) on Wednesday," revealed another trader in Shanghai, quoting RMB4,250/t (USD588/t) D/P with the concession of RMB20/t (USD3/t) for CRC SPCC 1.0mm*1,250mm*C at present. According to him, the demand from downstream industries remains soft and shows no signs of improving, though April acts as the traditional peak season. "Most downstream plants halved production due to shrinking orders for final products," added the trader. Given the high inventory in the market and the low purchasing enthusiasms of end users, he predicts another price decline of CRC in the forthcoming several days.
With the typical monthly sales volume of 2,000t, the trader estimates that the sales volume would achieve 1,000t in April, in line with March. He roughly sold 21,000t of CRC in 2023 and 3,000t in the first three months of 2024. Presently, the trader holds around 1,000t in inventory, and he does not plan to supplement it, adopting pessimistic attitude towards the market prospect.
"Though we quote RMB4,280/t (USD592/t) D/P for CRC SPCC 1.0mm*1,250mm*C, we could accept the price as low as RMB4,230/t (USD585/t) for firm orders discouraged by the poor sales performance," noted a trader in Guangzhou, who just sold 500t of the material at RMB4,230/t (USD585/t) on Sunday, and last sold 700t at RMB4,250/t (USD588/t) on Wednesday, while the daily sales volume reached 1,000t in early January. According to him, downstream plants maintain low operating rates due to the insufficient orders for final products, and thus the demand for CRC remains soft. Besides, the market inventory keeps rising due to the full production of steel mills, while weakens the confidence of market participants to some degree. The trader deems prices of CRC would edge down further in the coming several days.
Holding around 30,000t in stock, doubling that in January, the trader might sell 12,000t of HRC in April, similar to March. Based on the regular monthly sales volume of 15,000t, he recorded the sales volume of around 30,000t in the first three months of 2024.
"Regular clients keep inactive in purchasing dragged by insufficient orders for final products. We received several inquiries on Sunday, but did not conclude any deals, and last sold 50t of CRC at RMB4,280/t (USD592/t) on Wednesday," revealed another trader in Shanghai, quoting RMB4,250/t (USD588/t) D/P with the concession of RMB20/t (USD3/t) for CRC SPCC 1.0mm*1,250mm*C at present. According to him, the demand from downstream industries remains soft and shows no signs of improving, though April acts as the traditional peak season. "Most downstream plants halved production due to shrinking orders for final products," added the trader. Given the high inventory in the market and the low purchasing enthusiasms of end users, he predicts another price decline of CRC in the forthcoming several days.
With the typical monthly sales volume of 2,000t, the trader estimates that the sales volume would achieve 1,000t in April, in line with March. He roughly sold 21,000t of CRC in 2023 and 3,000t in the first three months of 2024. Presently, the trader holds around 1,000t in inventory, and he does not plan to supplement it, adopting pessimistic attitude towards the market prospect.
