Asian hot-rolled coil prices were unchanged June 19, amid thin trades in the export market as real demand has not improved, sources said.
Platts assessed SS400 HRC of 3 mm thickness unchanged from June 16 at $548/mt FOB China on June 19. The same grade of coil was assessed unchanged from June 16 at $549/mt on a CFR Southeast Asia basis.
In the export market, a few Chinese mill offers were heard at $585-$590/mt FOB levels, unchanged from the week before, according to sources. A few sources said that China’s export market trading activity remained weak, even when prices in China were increasing, partly because its prices became less competitive.
“Mills’ offers [of around $590/mt FOB China] are usually too high for buyers to accept,” a northern Chinese mill source said, adding that some mills could accept levels of $550-$560/mt FOB China.
“I’m not optimistic about this week’s prices, because China will be away June 22-23 for the Dragon Boat Festival, leaving this week quite short for deals,” a China-based trader said, adding: “Also prices have risen much in the past two weeks, so this could be the time for some [downward] corrections.”
A northern China mill source added that the actual market demand did not improve significantly, so the source is not optimistic of further price increase, even though market expectations have been good.
On June 19, the most actively-traded October HRC contract on the Shanghai Futures Exchange closed at Yuan 3,852/mt, down Yuan 47/mt from June 16.
Platts assessed the spot price of Q235 5.5 mm HRC in Shanghai at Yuan 3,900/mt ($547.75/mt) ex-stock Shanghai June 19, including value-added tax, down Yuan 20/mt from June 16.
In the Vietnam market, a trader said that market was bad, but some deals were concluded the week before for those who needed to buy due to low stock level, at $545-$550/mt CFR level.
“The Vietnam market will be better by Q4, not Q3. Even though the interest rate in Vietnam was cut further, the effects will not be felt instantly, and majority of the businesses are suffering,” a Vietnam-based trader said.
Platts assessed SAE1006 HRC unchanged from June 16 at $564/mt FOB China June 19. The same grade of coil was assessed unchanged over the same period at $571/mt on a CFR Southeast Asia basis.
