Asian hot-rolled coil prices rose Nov. 20 alongside a stronger Chinese market, coupled with the strengthening of yuan against the dollar.
“Today export sales are still slow due to the appreciation of yuan. But the domestic market is quite hot now — we managed to sell around 20,000 mt domestically,” a Tangshan-based mill source said, adding that the deal was at Yuan 3,920/mt ex-works.
The most actively traded January contract on the Shanghai Futures Exchange closed at Yuan 4,047/mt Nov. 20, up Yuan 35/mt or 0.9% from Nov. 17.
Platts assessed the spot price of Q235B 5.75 mm HRC in Shanghai at Yuan 3,980/mt ($554/mt) ex-stocks Shanghai Nov. 20, including value added tax, up Yuan 20/mt from Nov. 17.
“I think there is limited room for further price uptick,” a Shanghai-based trader said.
“The domestic market is rising too fast and too much, which is very hard for overseas buyers to follow,” an eastern mill source said.
Platts assessed SS400 HRC of 3 mm thickness up $5/mt from Nov. 17 at $548/mt FOB China Nov. 20. The same grade of coil was assessed up $5/mt over the same period at $556/mt CFR Southeast Asia.
In the Vietnamese market, most participants were in a watch and- wait mode after the uptick in the Chinese futures market later in the afternoon, an eastern China trader said.
Other sources said the exchange rate was not favorable for Chinese exports and fewer offers were heard for Vietnam Nov. 20, as market participants waited for the forex to stabilize.
“Although prices are increasing at present, buyers order when they have firm needs, so orders for inventory purpose is scarce,” a Vietnamese trader said.
Platts assessed SAE1006 HRC up $3/mt from Nov. 17 at $566/ mt FOB China on Nov. 20. The same grade of coil was assessed up $3/mt over the same period at $577/mt CFR Southeast Asia.
Vietnamese steelmaker Formosa Ha Tinh Steel was heard to have sold out their domestic allocations for November offer, according to a source familiar with the matter.
