Asian hot-rolled coil market continued the downward trend June 22, in line with lower Chinese offers on falling Chinese physical and futures market, along with anticipation of more declines in the slow summer season.

          S&P Global Platts assessed SS400 HRC 3 mm thick at $902/mt FOB China, down $3/mt on the day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $884/mt, down $5/mt on the day.

          Some Chinese mills updated their new SS400 HRC offers for the week, down $20/mt on the week to chase the lower domestic market, taking most prevailing offering level at $920-$940/mt FOB for August shipment. “But buyers are all quiet so far this week. And it’s expected to see more declines in the new term,” said a Chinese mill source. Export prices are still higher domestic level, but demand in the overseas market has weakened lately, said another mill source. Spot HRC prices in northern China was equivalent to about $850/mt FOB now, according to market source.

          In Vietnam, fresh offers from a Chines mill source was at $887/mt CFR for coil and $897/mt CFR for cut sheet, for September shipment.

          Platts assessed SAE1006 HRC at $947/mt FOB China, down $4/mt on the day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $949/mt, down $4/mt on the day.

          In Vietnam, trading activity for SAE was quiet, as buyers kept away from the market. “Domestic sales is slow and only buyers re-exporting materials is still good. When price is above $900, buyers consider it's risky, and demand from end-users decreased because they cannot catch this price level,” said a Vietnamese trader.

          In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 5,320/mt ($822/mt) ex-stock, including value added tax, down Yuan 60/mt on the day.

          On the Shanghai Futures Exchange, the most actively traded October HRC contract closed at Yuan 5,153 /mt, down Yuan 17/mt, or 0.3%, over the same period. The contract reached the lowest level since May 26.

          Meanwhile, Platts assessed SPCC grade 1 mm thick CRC at $900/mt FOB China on June 22, down $10/mt on the week. The decline was mainly in line with weakened domestic market and HRC prices, which saw more rooms for sellers to negotiate prices down.

          In the Shanghai dealers' market, Platts assessed the same CRC grade at Yuan 6,000/mt ex-stock, including VAT, down Yuan 150/mt on the week.