Asian hot-rolled coil prices remained flat Sept. 28 as market participants were waiting for a clearer market trend. The Chinese domestic market continued to be supported by production cuts with the approach of the week-long National Day holidays, while the Vietnamese market was still subdued by weak buying activity.
S&P Global Platts assessed SS400 HRC of 3 mm thickness at $924/mt FOB China, flat day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $867/mt, stable on the day.
Chinese export activity remained weak, as nationwide power cuts in China halted production and the offers from the mills were not competitive in the seaborne market.
Even with the output cuts at mills, it’s hard to see a strong rally in the domestic market in the near term as the demand remained weak, said a China-based mill source. The spot HRC market is currently mainly supported by output cuts, the source said.
Platts assessed SAE1006 HRC at $958/mt FOB China, flat day on day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $876/mt, unchanged on the day.
In Vietnam, the market continued to see a wide offer-bid spread, although there were talks about the local government’s plan to ease restrictions from Oct. 1.
“This week, the customers’ targets are lower. If Indian mills have room to lower prices, they will have to lower prices further,” said a Vietnam-based trader.
Market participants were also closely watching the power cuts situation in China, and [if prices increase in China] there’s the likelihood that local producer Formosa doesn't need to decrease prices in October and it may support the Indian price level, the trader said.
In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 5,740/mt ($888/mt) ex-stock, including value added tax, up Yuan 10/mt on the day.
On the Shanghai Futures Exchange, the most active January contract closed at Yuan 5,671/mt, up Yuan 79/mt, or 1.4% day on day.
Meanwhile, export activity for CRC and HDG from China were also stagnant given the shrinking export allocations and sparse offers.
Platts assessed SPCC grade 1 mm thick CRC at $1,025/mt FOB China Sept. 28, flat on the week. The spread between the export price of CRC and commercial-grade HRC was at $101/mt, widening $3/mt on the week.
In the Shanghai dealers' market, Platts assessed the same CRC grade at Yuan 6,450/mt ex-stock, including VAT, flat on the week.
Platts assessed monthly SPCC grade 1 mm thick CRC at $1,060/mt CFR East Asia, down $5/mt on the month.
Platts assessed 1 mm thick DX51D HDG with 120 g/sq m zinc coating at $1,085/mt FOB China, down $15/mt on the month.
The 1 mm thick DX51D HDG in the Shanghai spot market was assessed at Yuan 6,700/mt, with 13% VAT, down Yuan 110/mt on the month.
-- Steel Business Briefing
