Asian hot-rolled coil prices were mixed April 7 amid lower offers in China after the Qingming holiday and tight supply in Vietnam.
Platts assessed SS400 HRC of 3-mm thickness at $477/metric ton FOB China on April 7, down $2/mt day over day. The same grade was assessed at $545/mt CFR Southeast Asia, up $8/mt over the same period.
Export offers from private mills slipped to upward of $478/mt FOB Jingtang, down $3/mt from before the holidays, while mainstream mills kept offers steady at $495/mt FOB Bayuquan.
Sellers’ tradable levels for mainstream material hovered at $490-$495/mt FOB Bayuquan, though a mainstream mill source said the lower end of the range was not workable.
“It is difficult to negotiate now because of the high production costs. Demand, however, is not good, as customers are still on wait and see,” a source from the mainstream mill said.
The source added that freight rates were more stable this week than the previous week, when the Iran war escalated, but this still did not alleviate buyers’ concerns.
Many were also watching the situation in the Middle East unfold, especially as US President Donald Trump had threatened to destroy power plants and bridges in Iran if the Strait of Hormuz is not fully reopened by Tuesday’s deadline.
The most actively traded May HRC contract on the Shanghai Futures Exchange closed at Yuan 3,275/mt April 7, down Yuan 10/mt, or 0.3%, day over day.
Platts assessed the spot price of Q235B 5.75-mm HRC at Yuan 3,290/mt ($478/mt) ex-stock Shanghai April 7, including value added tax, down Yuan 10/mt day over day.
In Southeast Asia, import offers remained largely absent in Vietnam due to elevated freight costs.
Chinese wider-width Q235-grade HRC were offered at $520/mt CFR Vietnam, with demand largely from buyers who purchase for re-export processing.
Buyers’ tradeable levels for open-origin SS400 and SAE1006 grades were reported at $540/mt CFR Vietnam, up $5/mt week over week, with tradeable levels as high as $550/mt CFR.
“With domestic supply being tight, desperate buyers can consider some tolerance,” a Vietnam-based trader said.
Platts assessed SAE1006 HRC at $500/mt FOB China April 7, unchanged day over day. The same grade of coil was up $8/mt over the same period at $545/mt CFR Southeast Asia.
