The Asian hot-rolled coil market was stable Oct. 26, as buyers were mainly waiting at the sidelines for a clear market trend amid slightly weak Chinese domestic market.
S&P Global Platts assessed SS400 HRC 3 mm thick at $514/mt FOB China, unchanged day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $523/mt, up $2/mt day on day.
One northeastern China mill offered $545/mt FOB for January shipment, up $5/mt on the week, while another two mills offered $520-$535/mt FOB, stable on the week. More Chinese mills are expected to update offers for the week as is the practice.
Buyers were mainly holding their bids, although some of them were with slightly higher indications, market sources said.
“Some buyers are still bearish for market outlook for China, they would rather wait and see for a while,” said a Chinese mill source. South Korean buyers can accept $520/mt CFR, but nobody gave the bids, said a Korean trader.
In Vietnam, a deal of $525/mt CFR was reported concluded late in the Oct. 18 week, but no new bids were heard on the day.
Separately, Platts assessed SAE1006 HRC at $524/mt FOB China, unchanged day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $530/mt, unchanged over the same period.
In Vietnam, local buyers remained hesitating in booking, although available cargo for December shipment was also limited. The market witnessed lack of new movements amid an uncertain sentiment, due to the weakness in Chinese market.
Offer levels for early January shipment SAE coils were heard at $535/mt CFR, when buying indication for December shipment remained at $525-$530/mt CFR.
There was market chatter about a deal of 10,000 mt of Chinese SAE coils concluded at $528/mt CFR in the week ended Oct. 24, but it was not confirmed.
“Buyers worry the price will decrease,” said a Vietnam-based trader. “Market trend is not clear. Iron ore, coking coal prices already dropped,” said a local re-roller.
In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 3,910/mt ($583/mt) ex-stock, including value-added tax, down Yuan 10/mt day on day. On the Shanghai Futures Exchange, the most actively traded January contract closed at Yuan 3,795/mt, up Yuan 10/mt, or 0.3%, over the same period.
-- Yi-Le Weng
