The FOB and CFR prices in the Asian hot-rolled coil market diverged May 18 amid bearish cues from China.

          The most actively traded October contract on the Shanghai Futures Exchange closed at Yuan 3,761/mt on May 18, down Yuan 40/mt from the previous session.

          Platts assessed the spot price of Q235 5.5 mm HRC in Shanghai at Yuan 3,910/mt ($ 561.45/mt) ex-stock Shanghai on May 18, including value-added tax, down Yuan 20/mt on the session. SS400 grade availability from Hebei region mills had decreased, while offer for the same grade of coil from other regions were heard around $550/mt FOB and those for SAE1006 ranged from $585/mt to $605/mt FOB during trading hours, market sources said.

          Meanwhile, in Vietnam, offers from Chinese mills were heard to be the most competitive around $600/mt CFR, while those from other regions ranged from $615/mt to $620/mt CFR, market sources said.

          Market participants said a June-July shipment offer by local producer Formosa Ha Tinh Steel in the $620-$623/mt CIF range was too high, and some expected the steelmaker to lower it. Platts assessed SAE1006 HRC unchanged on the day at $575/ mt FOB China on May 18. The same grade of coil was assessed up $6/mt on the day at $580/mt basis CFR Southeast Asia.

          In the Middle East, market sentiment has been bearish, with a tradeable value for base grade coil heard in the $610-$620/mt CFR range.

----S&P Global Commodity Insights.