Asian hot-rolled coil and plate prices stood flat Oct. 6, as market participants held off from making purchase decisions even as Indian domestic HRC prices jumped amid hike in mill offers.
S&P Global Platts assessed SAE1006 HRC on a CFR Southeast Asia basis at $870/mt, unchanged on the day. Platts assessed SS400 HRC 3 mm thick at $859/mt on a CFR Southeast Asia basis, unchanged on the day.
Market participants in Vietnam pointed out increase in local long product pricing, with an expectancy of flat product pricing also increasing in the week starting Oct. 11 even though demand recovery remained slow.
“There is no room for Vietnam market to accept over $900/mt CFR from all sources,” a Vietnam-based re-roller said.
According to a mill source with local producer Hoa Phat, domestic re-rollers have booked quantities for December shipment even though price announcement to the public at large will come in later.
“There are always loyal customers which book us monthly even before the price releasing date ... we haven’t confirmed price yet, only quantity,” he said.
Market participants also commented on the outlook ahead, after China’s return on Oct. 8.
“I have concerns that Chinese Electricity shortage problem may push Chinese BF Mills restart to export HRC,” a South Korean mill source said.
Meanwhile, Platts assessed IS2062, 2.5-10 mm thick HRC delivered to Mumbai at Rupee 68,0000/mt ($906.48/mt), increasing by Rupee 2,000/mt week on week. The assessment excludes GST of 18%.
Several Indian mills were heard to have raised offers for October deliveries by Rupee 1,500/mt.
“Markets have already incorporated the Rupee 1,500/mt hike. Mills were heard talking about Rupee 4,000/mt hike but they have increased only Rupee 1,500/T, so mostly they will go step by step,” a Mumbai-based trader said.
Separately, Platts assessed Q235/SS400 grade 12-25 mm thick plate, or equivalent, at $954/mt CFR East Asia, flat on the week. The assessment was normalized to Dangjin port in South Korea. Import activity into South Korea remained dismal in the absence of Chinese market participants.
-- Steel Business Briefing
