Asian hot-rolled coil prices were unchanged Oct. 1 amid quiet markets as market participants in several countries, including China, Taiwan and South Korea, remained away on holidays.

S&P Global Platts assessed SS400 HRC 3 mm thick at $502/mt on a CFR Southeast Asia basis, unchanged on the day. Platts also assessed SAE1006 HRC at $513/mt on a CFR Southeast Asia basis, unchanged day on day.

Market participants did not hear any fresh offers as China, the dominant player in steel trade in recent weeks, remained away at the start of its Golden Week holidays. Sources were heard waiting for the weeklong holiday period to subside to gain further clarity on whether the slide in international prices will continue, on account of weakness emanating from high inventories in China.

According to a Vietnam-based trader, the Vietnam market is in want of material as buying activity in the last two weeks has remained sluggish and inventories were low with end-consumers. At the same time, prices in the region have not dropped drastically in the last couple of days, making customers unsure of their buying levels. Buyers may be willing to pay up to $517-$520/mt for SAE1006 rerolling grade coils provided those are for prompt October shipment, even though their indications for 2 mm material for November shipment stood at $515/mt.

“Mills like Benxi and Baosteel can also not adjust their shipment and can maximum do mid-December shipment, so it’s only Indian mills who might want to do November. And Indian mills are not willing to drop the price at this point,” he said. “Chinese mills will likely boost prices immediately after they return but clear picture will emerge after Oct. 15.”

In India, mills announced an increase in domestic prices for the fourth consecutive time. As a natural corollary, as mills have been able to sustain the price rise in the domestic market amid better prospects, the inclination to export at lower levels seems unlikely.

 

Mills were focusing on export sales of downstream products to markets like Middle East and Latin America to a certain degree, with interest for exporting commercial HRC to Southeast Asia on the back burner for now.

“Most Indian mills do not have much material to offer to Vietnam for November to change the price pattern. I think China will set the agenda,” an Indian mill source said. “China had unprecedented level of production last two months, and after being closed for 10 days, there naturally will be pressure to liquidate inventories and therefore prices to soften.”

India’s Tata Steel was looking at December production and January shipments for its exports, with AM/NS India likely to consider offering December shipment toward the end of October, sources at the mills confirmed. The European market does not look attractive to Indian mills at the moment given the high freight at $25-$30/mt, requirement of specialized grades, lower traded volumes compared to Southeast Asia, looming lockdowns in the region and an adverse exchange rate.

-- Ashima Tyagi