Chinese CRC market dim
2024-04-25 08:33:51 [Print]
BEIJING (Asian Metal) 25 Apr 24 - After the short-term boom in the past two weeks, the domestic CRC market turns slow again dragged by the low purchasing activities this week, and traders move down prices to promote sales. The current mainstream prices of CRC SPCC 1.0mm*1,250mm*C stand at RMB4,150-4,200/t (USD573-580/t) and RMB4,330-4,380/t (USD598-605/t) D/P respectively in Tianjin and Chengdu, down by RMB20/t (USD2.8/t) and RMB10/t (USD1.4/t) from early this week. Insiders foresee further price decline in the following several days upon the inactive market.
"End users hold back from purchasing this week as they bought enough materials in the past two weeks. Besides, most of them report insufficient orders for final products and maintain low operating rates," disclosed a trader in Tianjin, who just sold 80t of CRC SPCC 1.0mm*1,250mm*C at RMB4,150/t (USD573/t) when quoted RMB4,170/t (USD576/t) D/P on Wednesday, while insisted on RMB4,170/t (USD576/t) and offered RMB4,200/t (USD580/t) on Tuesday. He sold 200t a day easily early last week. According to him, prices of HRC, the direct raw material for CRC, lack power to edge up further this week, weakening the purchasing activities of CRC buyers to some degree. Taking the slow market into consideration, the trader deems prices of CRC would edge down further in the forthcoming several days.
Based on the regular monthly sales volume of 6,000t, the trader predicts to sell about 5,000t of CRC in April, up from 3,000t in March. He roughly sold 5,000t of CRC in the first quarter of 2024 and 21,000t in 2023. Presently, the trader holds around 8,000t in inventory, down from 10,000t early this month.
Another trader in Chengdu, Sichuan also reports a slow market. "We tried to contact several regular clients this week, but they remained not in a hurry in purchasing. Believing prices of CRC would go down after the May-Day holiday, they refuse to build stocks and strictly purchase from hand to mouth," explained the trader. After tough negotiations, he just sold 100t of CRC SPCC 1.0mm*1,250mm*C at RMB4,340/t (USD599/t) when quoted RMB4,350/t (USD600/t) on Wednesday, and last sold 80t at RMB4,350/t (USD600/t) on Tuesday, while sold 150-200t a day last week. Given the stocks would accumulate after the May-Day holiday, the trader adopts pessimistic attitude towards the market prospect and believes prices of CRC would decline further in the coming several days.
Holding around 2,500t of stocks, the trader might sell 4,000t of CRC in April, up from 3,000t in March. With the typical sales volume of 5,000tpm, the trader recorded the sales volume of around 35,000t in 2023 and 6,000t from January to March of 2024.
"End users hold back from purchasing this week as they bought enough materials in the past two weeks. Besides, most of them report insufficient orders for final products and maintain low operating rates," disclosed a trader in Tianjin, who just sold 80t of CRC SPCC 1.0mm*1,250mm*C at RMB4,150/t (USD573/t) when quoted RMB4,170/t (USD576/t) D/P on Wednesday, while insisted on RMB4,170/t (USD576/t) and offered RMB4,200/t (USD580/t) on Tuesday. He sold 200t a day easily early last week. According to him, prices of HRC, the direct raw material for CRC, lack power to edge up further this week, weakening the purchasing activities of CRC buyers to some degree. Taking the slow market into consideration, the trader deems prices of CRC would edge down further in the forthcoming several days.
Based on the regular monthly sales volume of 6,000t, the trader predicts to sell about 5,000t of CRC in April, up from 3,000t in March. He roughly sold 5,000t of CRC in the first quarter of 2024 and 21,000t in 2023. Presently, the trader holds around 8,000t in inventory, down from 10,000t early this month.
Another trader in Chengdu, Sichuan also reports a slow market. "We tried to contact several regular clients this week, but they remained not in a hurry in purchasing. Believing prices of CRC would go down after the May-Day holiday, they refuse to build stocks and strictly purchase from hand to mouth," explained the trader. After tough negotiations, he just sold 100t of CRC SPCC 1.0mm*1,250mm*C at RMB4,340/t (USD599/t) when quoted RMB4,350/t (USD600/t) on Wednesday, and last sold 80t at RMB4,350/t (USD600/t) on Tuesday, while sold 150-200t a day last week. Given the stocks would accumulate after the May-Day holiday, the trader adopts pessimistic attitude towards the market prospect and believes prices of CRC would decline further in the coming several days.
Holding around 2,500t of stocks, the trader might sell 4,000t of CRC in April, up from 3,000t in March. With the typical sales volume of 5,000tpm, the trader recorded the sales volume of around 35,000t in 2023 and 6,000t from January to March of 2024.
