Asian hot-rolled coil prices stood flat Oct. 7, amid muted trading activity with end-users refraining from making purchase decisions.

          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 that the government is likely to reduce the Value Added Tax, currently at 10%, along-side providing various other tax incentives to propel the economy’s growth. This in turn would bode well for demand in the coming days, after a long lockdown induced by COVID-19 during August-September. At the same time, buyers would await China’s return from the holidays on Oct. 8 as well as local producer Formosa Ha Tinh Steel’s offers in the week starting Oct. 11.

          A mill source at FHS mentioned that the company’s offers are likely to stay the same as last month, however, the company may rethink the same in light of the market situation on Oct. 8. During the last month, offers for non skin-passed SAE1006 rerolling grade coils by the local mill stood at $915-$920/mt CFR Hai Phong and $920-$925/mt CFR Ho Chi Minh City for November shipment, depending on the customer concerned.

          “I expect [FHS] to be under $900/mt.. If they keep same, nobody [will] buy,” a Vietnam-based re-roller said.

          Ukrainian mill Metinvest was also heard to be in discussion with local re-rollers, and could conclude deals at $850-$860/mt CFR Vietnam, according to sources.

-- Steel Business Briefing