Asian hot-rolled coil prices fell Jan. 10 amid bleak demand outlook and uncertainty due to surging COVID-19 infections.
S&P Global Platts assessed SAE1006 HRC at $763/mt FOB China, down $1/mt from Jan. 7. The same grade of coil was assessed at $746/mt on a CFR Southeast Asia basis, unchanged over the same period.
Demand prospects in Vietnam were weak, with 15,779 new COVID-19 cases reported Jan. 10. The country's domestic industry grappled with low demand that moderately improved in October, following the first COVID-19 wave during July-September. Vietnam has by far gone through four waves of COVID-19 infections of increasing scale and complication..
Market participants were concerned about fresh lockdowns or severe social distancing measures if cases continued to rise, with buyers adopting a wait-and-watch attitude, particularly with local HRC producer Formosa Ha Tinh Steel, or FHS, expected to release offers Jan. 12.
“Now seems customer only cares about Indian offers … Indian price is lower than China,” a Vietnam-based trader said.
India, the most competitive supplier in Vietnam currently, witnessed a massive spike of 179,000 fresh COVID-19 cases Jan. 10, up from an average of 10,000-15,000 daily cases about 10 days ago.
Platts assessed SS400 HRC 3 mm thick at $753/mt FOB China, down $1/mt from Jan. 7. The same grade of coil was assessed at $748/mt on a CFR Southeast Asia basis, unchanged from the previous session.
Several Chinese mills kept their domestic list prices unchanged, with a few also retaining their export offers. The sentiment about demand outlook was weak with 92 cases of community spread in the northern city of Tianjin, despite an increase in the futures market Jan. 7. The Tianjin outbreak posed risks for Beijing and the upcoming Winter Olympics, according to newspaper reports.
The spot price of Q235 5.5 mm HRC in Shanghai was assessed at Yuan 4,920/mt ($772.10/mt) ex-stock Jan. 10, including VAT, down Yuan 30/mt from Jan. 7. The most actively traded October 2020 contract on the Shanghai Futures Exchange closed at Yuan 4,632/mt, down Yuan 45/mt, or 1%, over the same period.
-- Steel Business Briefing
