Asian hot-rolled coil prices edged higher Aug. 12, supported by price increases in the Chinese market, though export demand remained sluggish.
Platts assessed SS400 HRC of 3 mm thickness up $3/mt at $479/mt FOB China Aug. 12. The same grade rose $3/mt to $483/ mt CFR Southeast Asia over the same period.
Export offers were heard at upward of $490/mt FOB China. Mainstream mill offers remained unchanged week over week at $505/mt FOB Bayuquan, with sellers’ tradable levels reported above $485/mt FOB.
A 3,000 mt transaction of mainstream material was concluded at a base price of $485/mt FOB Bayuquan to Thailand in the week to Aug. 8, though a mill source noted that the price was no longer workable in the current market.
“Negotiations are done on a case-by-case basis, as prices fluctuate daily,” said a mainstream mill source. “The gap between selling and buying ideas is quite big to work with.” The source added that there were few inquiries entering the week of Aug. 11.
The most actively traded October HRC contract on the Shanghai Futures Exchange closed at Yuan 3,484/mt Aug. 12, up Yuan 19/mt, or 0.5% day over day.
Platts assessed the spot price of Q235B 5.75 mm HRC at Yuan 3,510/mt ($488/mt) ex-stock Shanghai on Aug. 12, including valueadded tax, up Yuan 40/mt on the day.
Meanwhile in Southeast Asia, offers for wider width material are reported up by $3/mt day over day to upward of $498/mt CFR Vietnam, with market participants noting mainly driven by production restrictions news in Tangshan.
A deal of wider width material was heard done at $485-$490/ mt CFR Vietnam in the past week, with an amount likely to be 150,000 mt, for both Hai Phong and Ho Chi Minh ports.
A Vietnam-based trader noted that the deal price is not workable for this week anymore, considering the rising Chinese ferrous futures. “Sellers are quite firm on their offers; the tradable price for now should be $493-$495/mt CFR Vietnam,” said the trader.
In the SAE1006 segment, Indonesian coils of 3mm thick are heard unchanged at $510/mt CFR Vietnam. Offers for Korean coils are reported at $515/mt CFR Vietnam.
Rerollers in Vietnam were mainly dealing with local materials and showing limited interest in imports.
Platts assessed SAE1006 HRC as up $3/mt day over day at $496/mt FOB China Aug. 12. The same grade of coil was up $2/mt over the same period at $507/mt CFR Southeast Asia.
