The dearth of overseas orders pushed Chinese sellers to further trim selling prices of hot rolled coil April 19, market participants said. Most remained pessimistic about prices in the near future given limited transactions and weak Chinese domestic prices.
S&P Global Platts assessed SS400 HRC 3.0mm thick at $407-412/metric ton FOB China April 19, implying a midpoint of $409.50/mt that was down $10.50/mt on day and the lowest level since October 28, 2016.
A deal for around 10,000 mt of SS400 HRC was heard closed at $420/mt CFR Vietnam (with assumed freight of $10/mt) April 18, several sources said. It was possible an eastern China-based mill had done the sale as the mill was very short of overseas orders, one added.
A Shanghai-based trader said that the above mill had offered only $420/mt CFR South Korea for SS400 HRC April 19 and would consider selling lower for firm bids. A second mill in eastern China offered $415/mt FOB China for the same grade coil, a mill source said.
Analysis continues below...
Some limited deals were concluded this week at $410-415/mt FOB China for SS400 HRC, but on April 19 a large Chinese trader based in Vietnam said such a level had become too high and receiving any orders would be difficult.
A Shanghai-based trader even heard a deal for the same grade coil being done at $405/mt FOB China April 18, but no further details could be obtained.
The Shanghai trader said there was still room for SS400 HRC prices to dip further as Chinese domestic selling prices were equivalent to $395-400/mt FOB China. This is especially when Chinese domestic sales are not good, he added.
For SAE coil, Chinese offers prevailed at $430-435/mt CFR Vietnam for June shipment, but no deals were heard concluded, a Vietnamese trader said.
Platts analyzes other steel and scrap products in this feature:
Iron ore | Scrap | HRC | Rebar | Semi-finished | News
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