The Asia hot rolled coil market was largely stable July 15 amid slow trading activity, while the China domestic market was volatile due to slow season and expectations of production cuts.
S&P Global Platts assessed SS400 HRC 3 mm thick at $911/mt FOB China, flat on the day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $915/mt, up $6/mt on the day.
Chinese mills were holding SS400 offers for September shipment stable amid limited allocation in the export market during the week. Mills were sticking to their prices due to firm raw material prices and expectations of output cuts, market sources said.
Offers in Vietnam were lacking due to the widening China market price and local ideal level. “There are no offers today. But some buyers’ indications are getting higher as no lower offers,” said a Vietnamese trader. Buying indications were heard at $910-$920/mt CFR on the day.
Platts assessed SAE1006 HRC at $939/mt FOB China, flat on the day. On a CFR Southeast Asia basis, the same grade of coil was assessed at $921/mt, flat on the day.
In Vietnam, buyers were still awaiting Formosa Ha Tinh Steel’s upcoming offers for September delivery, as the mill delayed the announcement to the July 18 week.
Offer level for some rerolling grade Indian SAE were heard at $925-$930/mt CFR for August shipment. But no bids were heard on the day.
In Shanghai, the spot price of Q235 5.5 mm HRC was assessed at Yuan 5,860/mt ($907/mt) ex-stock, including value added tax, down Yuan 30/mt on the day.
On the Shanghai Futures Exchange, the most actively traded October contract closed at Yuan 5,962/mt, down Yuan 37/mt, or 0.6%, over the same period. This was the first decline after the contract rose for four straight sessions, recording a total gain of Yuan 249/mt.
— Analyst Yuelin Dai