Asian hot-rolled coil prices diverged Jan. 5, as China’s market reopened to subdued demand amid lingering policy uncertainty, while Indian prices firmed after the government imposed a threeyear staggered safeguard duty on imports of non-alloy and alloy steel flat products.
Platts assessed SS400 HRC of 3 mm thickness at $459/mt FOB China Jan. 5, unchanged from Jan. 2. The same grade was assessed at $478/mt CFR Southeast Asia, unchanged over the same period.
Export offers from China were largely stable at $465/mt FOB and above, though a Northern China mill was heard to have trimmed offers by $2/mt amid thin buying interest.
An Eastern China-based trader said the lack of fresh catalysts, coupled with cautious sentiment, kept prices rangebound. Market participants were also watching for the effects of the steel export licensing regime, which was implemented on Jan. 1, with no non-value-added tax offers reported as of Jan. 5.
The most actively traded May HRC contract on the Shanghai Futures Exchange closed at Yuan 3,248/mt on Jan. 5, down Yuan 22/mt, or 0.7% from Jan. 2.
Platts assessed the spot price of Q235B 5.75 mm HRC at Yuan 3,260/mt ($467/mt) ex-stock Shanghai on Jan. 5, including value added tax, down Yuan 10/mt from Jan. 2.
In Southeast Asia, Indian SS400 and A36 grade coils were offered at around $485/mt CFR Vietnam, up $3/mt from Jan. 2, though one offer for 3,000 mt was reported at $492/ mt CFR. Buying ideas were heard as low as $475/mt CFR, Vietnam-based traders said.
Indicative offers for Chinese Q235 grade coils hovered around $485/mt CFR Vietnam, but interest was minimal due to expectations of an antidumping duty.
A Vietnam-based trader said buyers were in no rush to secure volumes, citing sufficient near-term inventories and uncertainty over downstream steel consumption.
In the SAE1006 segment, offers for Indian 30% 2 mm-thick coils also rose to $485-490/mt CFR Vietnam, up $3/mt from late last week.
A source from a leading Indonesian mill said it was offering at $476/mt FOB, which would translate to around $489-491/mt CFR Vietnam for 3 mm-thick coils.
Notably, Vietnam’s Hoa Phat Group on Jan. 5 raised its monthly domestic offers by $6/mt on the month to $509-510/mt CIF domestic ports.
Platts assessed SAE1006 HRC at $470/mt FOB China on Jan. 5, unchanged from Jan. 2. The same grade of coil was unchanged over the same period at $478/mt CFR Southeast Asia.
