Asian hot-rolled coil prices slipped in the week to Nov. 7, largely due to renewed trade uncertainty and sluggish demand in the spot market.

Platts assessed SS400 HRC of 3 mm thickness at $453/mt FOB China on Nov. 7, down $2/mt week over week. The same grade was assessed at $460/mt CFR Southeast Asia, down $6/mt over the same period.

Export offers slipped $5/mt week over week to $460/mt FOB China, with offers from private mills and mainstream mills reported at the same level.

Mainstream mills were heard not to be under as much pressure to sell as private mills, with a mill source saying that one mill has already fulfilled export targets.  Small quantity deals were concluded at $455-$460/mt FOB Bayuquan, the mill source said.

Market sentiment was dampened by weak macroeconomic data, with China’s exports in October falling 6.5% month-on-month to 9.78 million mt, according to customs data released on Nov. 8.

This marked the steepest drop since February, according to the data.

Some support for prices came from rising production costs following the latest round of coke price hikes in China and the recent suspension of tariffs on US imports.

HRC output was also reported lower week over week, as mills voluntarily cut production amid squeezed margins, while inventories edged up slightly as buyers stayed on the sidelines.

A China-based trader noted that many mills were selling at a loss or at the cost level. Despite the unprofitable market, a mainstream mill source believed it would be hard to see larger scales of production cuts than expected, leaving the market under pressure, especially with the resurgence of non-VAT cargoes.

The most actively traded January HRC contract on the Shanghai Futures Exchange closed at Yuan 3,245/mt on Nov. 7, down Yuan 11/mt, or 0.3% day over day.

Platts assessed the spot price of Q235B 5.75 mm HRC at Yuan 3,270/mt ($459/mt) ex-stock Shanghai on Nov. 7, including valueadded tax, down Yuan 70/mt week over week.