Asian HRC extends fall amid weakening Chinese market.

Asia hot-rolled coil prices continued to weaken May 20 amid sluggish trading activity, as buyers stayed away due to the falling Chinese market.

S&P Global Platts assessed SS400 HRC 3 mm thick at $983/mt FOB China, down $12/mt day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $938/mt, down $32/mt day on day.

Sale activity remained stagnant amid the continuous lower Chinese domestic market, although it rebounded modestly in the afternoon May 20. Most buyers were still on hold before market outlook becomes clearer, said a China-based mill source.

In Vietnam, traders’ offer level for SS400 HRC were lowered to $940/mt CFR level, while some lowest sell indication was heard at $925/mt CFR. Offers for HR strip were at $910-$930/mt CFR.

Platts assessed SAE1006 HRC at $1,000/mt FOB China, down $14/mt day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $985/mt, down $20/mt day on day.

In Vietnam, most mills were holding their offers amid strong volatility in the Chinese market. Some traders’ offers by for position cargo remained at around $1,000/mt CFR level, and sellers are willing to negotiate.

But buyers don’t want to buy now as futures price have fluctuated too much recently, said a Vietnam-based trader. Some local producers for final products were heard to have increased their local selling prices on May 19.

In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 5,680/mt ($882/mt) ex-stock, including value added tax, down Yuan 95/mt day on day, after a modest rebound was seen in the afternoon in line with the futures market. After the sharp falls since the week ended May 15,

On the Shanghai Futures Exchange, the most actively traded October contract closed at Yuan 5,555/mt, down Yuan 123/mt, or 2.2%, over the same period.