Asian hot-rolled coil prices remained supported April 21 by an uptick in inquiries and active spot-market trading, reinforcing bullish sentiment.
Platts assessed 3-mm-thick SS400 HRC at $493/mt FOB China on April 21, up $1/mt day over day. The same grade was assessed at $580/mt CFR Southeast Asia, unchanged over the same period.
Export offers from private mills held largely steady at $495/mt FOB China and above, with a mainstream mill raising offers $20/mt week over week to $525/mt FOB Bayuquan due to gains in Chinese ferrous prices.
Most market participants noted that demand has improved modestly, with more trading activity seen in the market.
A mainstream mill source said the mill’s tradeable levels rose $10/mt from late last week to $510-$515/mt FOB Bayuquan on account of firm cost pressures. Buying interest hovered at $500/mt FOB.
“Demand is better compared to last week, but I think end users are still quiet. The traders, however, are more active,” the source said.
A deal for 15,000 Chinese base grade HRC was reportedly concluded at $492/mt FOB China, which a northern China mill source said was a good price, considering its offers were at $494/mt FOB Jingtang.
The source added that offers have risen day over day, hence tradable prices should edge up in tandem.
The most actively traded May HRC contract on the Shanghai Futures Exchange closed at Yuan 3,366/mt on April 21, up Yuan 4/mt, or 0.1% day over day.
Platts assessed the spot price of Q235B 5.75-mm HRC at Yuan 3,370/mt ($494/mt) ex-stock Shanghai on April 21, including value-added tax, up Yuan 20/mt day over day.
In Southeast Asia, offers for SS400 and SAE1006 grade HRC held steady at $610-$615/mt CFR Vietnam.
Chinese wider-width Q235 grade HRC was offered at $515-$520/mt CFR Vietnam, while regular-width Q195 grade was heard offered at approximately $10/mt lower.
Offers for Indonesian 3mm-thick coils held steady at $585/mt FOB Morowali, equivalent to around $600/mt CFR Vietnam, with tradeable levels reported at $585/mt CFR.
A Japan-based trader said buying interest was heard lower at $560/mt CFR Vietnam levels, which was not workable for a major Japanese mill whose price expectations were above $600/mt CFR Vietnam.
A Vietnam-based trader said there was speculation that domestic mills would raise next month’s HRC offers to approximately $580-590/mt CFR Vietnam, effectively capping price upside for imports.
Platts assessed SAE1006 HRC at $515/mt FOB China on April 21, up $2/mt day over day. The same grade of coil was unchanged over the same period at $580/mt CFR Southeast Asia.
