Asian HRC rises on higher deals, bids

          Asian hot-rolled coil market continued its upward trend on May 20, with fresh deals showing some buyers were trying to catch up with higher offers, in spite of the slight retreat seen in the Chinese physical and futures markets.

          S&P Global Platts assessed SS400 HRC 3 mm thick at $425/mt FOB China on May 20, up $5/mt day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed $8/mt higher day on day at $433/mt.

          Chinese mills were still holding prices stable at $435-$440/mt FOB level for June to July shipment, while they were said to be reluctant to sell below the $430/mt FOB level.

          Overseas buyers were trying to catch up modestly, with buying indications rising to touch $425/mt FOB, said market sources. A deal for 3,000 mt of SS400 HR sheet was concluded on May 19 at $440/mt FOB, according to a northern China mill source.

          “Domestic market is still strong, selling below $430/mt is too low for mills,” said a northern China mill source.

          In Vietnam, a deal was concluded on May 19 at $435/mt CFR for 10,000 mt of Indian SS400 coils, according to a mill source.

          Offers on May 20 were heard at about $440/mt CFR for July to August shipment, according to a local trader, while buyers were heard still negotiating in the range $430-$435/mt CFR level.

          Separately, Platts assessed SAE1006 HRC at $427/mt FOB China on May 20, up $9/mt day on day. On a CFR Southeast Asia basis, the same grade was assessed at $427/mt, up $7/mt day on day.

          In Vietnam, a new deal for 20,000 mt of Indian SAE coils was concluded on May 19, for June to July shipment, according to a mill source

          Offers on May 20 were at $435/mt CFR for India-origin SAE for July to early August shipment, while a bid was reported at $420-$425/mt CFR for July shipment.

          In Shanghai, the Q235 5.5 mm HRC spot price was assessed at Yuan 3,565/mt ($502/mt) ex-stock, including value added tax, down Yuan 15/mt day on day.

          On the Shanghai Futures Exchange, the most actively traded October 2020 contract closed at Yuan 3,446/mt, down Yuan 23/mt, or 0.7%, day on day. It marked the first decrease for the contract after rising for 12 straight days by a total gain of Yuan 320/mt.

          Separately, Platts assessed Q235/SS400 grade, 12-25 mm thick plate at $452/mt CFR East Asia on May 20, up $1/mt on the week. The assessment was normalized to Dangjin port in South Korea under Platts standard specifications.

          In Shanghai, domestic prices of the same-grade material were at Yuan 3,680/mt ex-stock on May 20, including VAT, up Yuan 80/mt on the week.

-- Analyst Yuelin Dai, Ashima Tyagi