Asian hot-rolled coil prices moved sideways Dec. 23, as the spot market entered the off-season, with trading activity subdued by a slowdown in demand.
Platts assessed SS400 HRC of 3 mm thickness up $1/mt from Dec. 20 at $471/mt FOB China on Dec. 23. The same grade of coil was assessed stable at $480/mt CFR Southeast Asia over the same period.
Export offers were rangebound to upward of $477/mt FOB China on Dec. 23, with most mills slashing offers by $5/mt.
Sources attributed this to the depreciation of the Chinese currency, as well as the general downtrend in steel prices.
However, a China-based trader said that sentiment was not that pessimistic, adding that the market was not in a depressive mood due to expectations of further policies to boost consumption in the new year.
“Macroeconomic expectations will be hyped after the New Year (holidays), so most people feel that this round of price decline will not be deep,” the trader said. Echoing this sentiment, a China-based mill source said this was why most mills kept offers rangebound and were quite firm on their selling prices.
The most actively traded January contract on the Shanghai Futures Exchange closed at Yuan 3,418/mt on Dec. 23, down Yuan 8/mt, or 0.2%, from Dec. 20.
Platts assessed the spot price of Q235B 5.75 mm HRC at Yuan 3,435/mt ex-stock Shanghai on Dec. 23, including value-added tax, up Yuan 20/mt from Dec. 20.
In Southeast Asia, offers for Q235 grade coils for January shipment were at $485/mt CFR Vietnam on Dec. 23, unchanged from Dec. 20, with indicative bids $5/mt lower.
Offers for Q195 grade coils, meanwhile, were at $480/mt CFR Vietnam for January shipment.
Offers for Chinese SAE1006 coils fell $5/mt to $495/mt CFR over the same period, but buying interest was minimal due to the looming antidumping duty on Chinese imports.
A Japan-based trader said a leading Japanese mill had indicated that it would offer March shipment cargoes to Vietnam at $540-$545/mt CFR Vietnam.
“The mill is leveraging the fact that Chinese rerolling-grade coils are no longer coming into the Vietnam market, so they are being more aggressive,” the trader said.
Platts assessed SAE1006 HRC steady from Dec. 20 at $486/mt FOB China on Dec. 23. The same grade of coil was assessed down $1/mt at $488/mt CFR Southeast Asia over the same period.
-- S&P Global Commodity Insights.
