Asian hot-rolled coil prices rose in the week to April 19 with strong performance in the Chinese market, while many overseas buyers turned cautious and remained on the sidelines.
Platts assessed SS400 HRC of 3 mm thickness $8/mt higher on the week at $525/mt FOB China on April 19. The same grade of coil was assessed up $13/mt week on week at $533/mt CFR Southeast Asia.
The most actively traded October contract on the Shanghai Futures Exchange closed at Yuan 3,835/mt on April 19, rising Yuan 56/mt or 1.5% from April 12.
Platts assessed the spot price of Q235B 5.75 mm HRC Yuan 50/mt higher week on week at Yuan 3,860/mt ($533/mt) ex-stock Shanghai on April 19, including value added tax.
Chinese mainstream mills’ export offers were in the $535- $560/mt FOB China range. Traders said that the tradable level for SS400 3 mm thick material was in the $530-540/mt FOB China range by the end of the week, gaining from $515-$520/mt FOB China early in the week.
“The increase is also driven by the raw material side, and improved demand, although it is hard to say if it’s sustainable”, a northern Chinese trader said.
The price increase put overseas buyers on the sidelines. Vietnamese buyers said that it was difficult to absorb Chinese imports as prices rose for the second week, and a depreciating dong weighed on their ability to import.
“Buyers are not interested as the local currency is depreciating very fast. Local stockiest are also increasing prices to cope with rising futures. They are used to China’s trend going through some ups and downs, so they are not in a rush to buy.
Currently, the local price is not much different from imports. We need to wait further to see if a bullish market is really here,” a Vietnamese trader said.
In India, falling domestic HRC prices proved unfavorable for imports. “Customer can’t accept HRC from China, because even with generous discounts [on official offers from Chinese mills], after freight and import tax, the CFR price is so much higher than domestic right now,” said an Indian trader.
Platts assessed SAE1006 HRC up $1/mt week on week at $543/mt FOB China on April 19. The same grade of coil was assessed at $549/mt CFR Southeast Asia, increasing $7/mt on the week.
