The Asian HRC market was mixed Aug.30, in line with further gains seen in China’s futures and physical market, while buyers in Vietnam remained waiting on the sidelines.

         flatS&P Global Platts assessed SS400 HRC 3 mm thick at $921/mt FOB China, up $1/mt on the day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $872/mt, up $5/mt from the previous day.

         Chinese exporters expect the export duty would not be implied at least in September. Thus it’s safe for traders to sell cargoes for September shipment, said a Chinese trader.

         Mills are cautious in selling closer to the spot market level, as the validity in futures market is relatively sharp now, said a Chinese mill source. “Price could increase by $15/mt in one single day,” he said, so mills want to sell above $920/mt FOB now.

         “Brazil has started to sell to South American buyers, [so] China will have no where to sell this month, or in the near future with this price and this export tax clause,” said a South Korean trader.

          Separately, Platts assessed SAE1006 HRC at $956/mt FOB China, up $1/mt on the day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $880/mt, down $5/mt over the same period.

          In Vietnam, about 5,000 mt of port-side position cargoes were offered lower on the week at $850/mt CFR, after they were offered at $880/mt CFR in the previous week. Demand in Ho Chi Minh City remained sparse due to the ongoing restrictions.

          Spot market in China increased further on Aug 30, while market sentiment improved with futures, amid market chatters that China’s southwestern Guangxi will strengthen its effort in output curbs in September.

          In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 5,730/mt ($886/mt) ex-stock including value added tax, up Yuan 50/mt on the day. On the Shanghai Futures Exchange, the most actively traded January 2022 contract closed at Yuan 5,637/mt, down Yuan 142/mt or 2.6%.

-- Steel Business Briefing