Activity in the domestic flat-rolled metal market in China has been adjusted downward. This situation spread to import markets in Southeast Asia.
A Chinese trader says it is offering Indian SAE 1006 HRC for mid-September shipments at $ 480 a tonne, up from Vietnam, up from $ 480-483 a tonne last Friday. Some bids reached $ 475 a tonne last week, up from Vietnam, but Indian suppliers are unwilling to release HRC at that level, Chinese trade sources say. However, Vietnamese buyers are reluctant to pay $ 475 /t CFR this week as the market has weakened, a trader said. “He is silent today,” an Indian trader said on Tuesday.
However, there are market participants who report last week’s deals at $ 470-475 /t in Vietnam. Last Friday, Vietnamese traders did not think that importers were willing to pay the Indian HRC above $ 470 /t because the market is facing weak demand and high inventories. China’s domestic market has peaked, according to a Hong Kong trader. Last week, China’s SAE 1006 HRC bids were above $ 490 /t compared to Vietnam.
China’s HDG export prices also peaked in the Philippines. Some proposals for the 1mm base HDG Z80 dominate at $ 570 /t, compared to last week’s offers that were above $ 580 /t and up.
“This is slightly lower than last week,” a Manila-based trader says about the HDG market. The last deals he heard of were between $ 565-570 per tonne in Manila in mid-July. He says a downward correction was “… inevitable” because it’s hard to believe that Chinese demand was enough “… to support record production, decline in exports and skyrocket imports.”