Chinese CRC & coated steel prices remain strong despite weak demand in South America
Based on statistics, China cold-rolled coil (CRC) imports to Brazil in June were only around 2,400 tons, which was about 90% down from 26,400 tons in the same period last year.
Brazilian auto exports market was mainly to Argentina, but its economic downturn in recent years caused the Brazilian auto industry sluggish. In addition, the poor vehicle sales impacted serious reduction in demand for auto steel such as CRC and coated steel.
In the first week of July, Chinese steel mills slightly increased its CRC and hot-dip galvanized steel coil exported offers by around US$5/ton.
However, market participants believed that this up-wave was only a short-lived one, and traders pointed out that the current actual demand couldn’t have enough support for this trend.