Asian hot-rolled coil prices were unchanged Oct. 8, with buyers in Vietnam looking forward to China’s return to the seaborne market on Oct. 9.
S&P Global Platts assessed SS400 HRC 3 mm thick at $502/mt on a CFR Southeast Asia, unchanged on the day. Platts also assessed SAE1006 HRC at $513/mt on a CFR Southeast Asia basis, unchanged day on day.
On the last day of the Golden week holidays in China, market participants anticipated greater trading activity from the week of Oct. 11 with buyers in Vietnam especially looking forward to offers from local HRC producer Formosa Ha Tinh Steel, or FHS.
While there was market chatter that FHS might drop its offers for December shipment by $10/mt compared to November, others believed the mill may not offer around $510/mt level, which was the prevailing market price.
Sources had diverse views on domestic market for downstream steel products in Vietnam. However, export potential for several big re-rollers was heard to be strong, given the strength exhibited by US and European markets.
“[Vietnam] mills doing well and enjoying the export portion since US or Mexico price is high,” a Vietnam-based trader said. “They’re taking a lot of orders.”
“Downstream locally is still sluggish, but export to US/EU markets seem very active,” a third Vietnam-based trader said.
“Domestic [market] is slow, and export is also slow. Customers don’t accept price increase,” a second Vietnam-based re-roller said.
While sources had mixed views on the trend prices could take, the emerging discourse centred around the likelihood of Chinese domestic demand remaining steady in the weeks ahead.
“I think the price will increase after holiday, because it seems some [non China] mills still keep their offers [stable] to other markets,” a fourth Vietnam-based trader said.
“From my view, the price may go down for a short time,” a Malaysian mill source said. “China’s governement will still support their domestic market at the moment.”
“Almost a $30/mt correction has already happened in September, I think further room for correction may be less,” an Indian trader said. “Everything will depend on iron ore prices.”
-- Ashima Tyagi
