The Asian hot-rolled market prices rose Nov. 9, as offers and buying indications moved higher amid bullish sentiment due to a strong rally seen in Chinese futures and physical markets.
On the Shanghai Futures Exchange, the most actively traded January contract closed at Yuan 3,983/mt, up Yuan 63/mt, or 1.6%, over the same period and marked the highest since Sept. 1.
In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 4,090/mt ($619/mt) ex-stock, including value-added tax, up Yuan 55/mt day on day, the highest level since end-October 2018.
S&P Global Platts assessed SS400 HRC 3 mm thick at $535/mt FOB China, up $8/mt day on day and reached the highest point since mid-March 2019. On a CFR Southeast Asia basis, the same grade of coil was assessed at $536/mt, up $4/mt day on day.
Some Chinese mills lifted offers on Nov. 9, amid healthy domestic demand, rising market prices and strong China Yuan against the US dollar. One northeastern China mill lifted offer for SS400 by $30/mt to $575/mt FOB, while a northern China mill lifted offer by $15/mt at $555/mt FOB for January shipment.
The domestic spot market prices were equivalent to $545-$550/mt FOB, some market sources said. “Mills have to increase offers as domestic prices increased strongly and currency is also stronger,” said a Chinese mill source.
Buyers were relatively quiet on the day, as more Chinese mills are expected to update offers for the week, as is the practice.
Separately, Platts assessed SAE1006 HRC at $547/mt FOB China, up $7/mt day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $548/mt, up $7/mt over the same period.
In Vietnam, market activity for offers and bids were quiet after Chinese market jumped suddenly. But buying indications were expected to be as high as $550/mt CFR for January shipment. “I think people have to accept. No cheaper materials,” said a Vietnamese reroller.
About 20,000 mt of Indian SAE were reportedly booked at $550/mt CFR for January shipment in the week ended Nov. 7, although the deal was not confirmed on Nov. 9.
Market participants in Vietnam were also keeping their eyes on Formosa Ha Tinh (FHS)’s prices for January shipments. There were common expectations that Formosa will raise its prices following the surge in global HRC prices in the past month.
