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WEEKLY HRC WRAP: Asia market falls while bearish sentiment persists

Friday, 01 October 2021

Asian hot-rolled coil prices fell in the week to Oct. 1, with the market sentiment remaining bearish even as trading volumes were low and China-based participants away on holidays.

S&P Global Platts assessed SAE1006 HRC at $868/mt on a CFR Southeast Asia basis, down $11/mt on the week. Platts assessed SS400 HRC 3 mm thick at $857/mt on a CFR Southeast Asia basis, down $10/mt on the week.

Chinese mills remained outside the export market Sept. 27-30, as their offers were not competitive enough and there was limited export allocation amid output cuts, with power shortages further adding to the woes.

With China-based market participants leaving for Golden Week holidays Oct. 1-7, trading activity largely came to a standstill, as buyers continued to wait on the sidelines. In Vietnam, after bookings for Russian material at $855/mt in the week started Sept. 26, offers for rerolling grade coils dried up for most origins Oct. 1.

“Indian mills cannot offer $850/mt or below to satisfy buying indications, that’s why they don’t offer,” a Vietnam-based re-roller said.

“The Indian mills will probably offer after China returns from holidays,” an Indian trader said.

Market activity is likely to stay muted in the week starting Oct. 3, several sources said.

“I think there might be some MMK finalizing, and then the market will wait for FHS and Hoa Phat’s new offers,” a South Korean trader said.

There was market talk that a trader was inviting bids for Russian coils at $840/mt for January shipment, even though the same could not be confirmed.

“Booking can be possible if customers find attractive price,” a Vietnam-based trader said.

“Local construction market seems will increase … some mills have started to increase local long products’ price … For flats, I think [everybody] will wait more to see if Indian mills have chance to sell,” a second Vietnam-based trader said. “Personally, I thought November shipment should still have demand.”

In India, spot market prices rose Rupees 1,000/mt on the week to Rupees 66,000/mt delivered Mumbai, amid heightened restocking activity ahead of another round of an anticipated price increase in October.

-- Ashima Tyagi

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