Chinese hot-rolled coils (HRCs) export prices managed to stabilize last week after four consecutive weeks of decline. However, the market remains fraught with risks due to the continued weakness in the domestic steel sector.
As of August 9, SS400 4.75mm HRC export prices remained steady at USD 487 per ton FOB from Tianjin port in North China.
Although prices were unchanged from the previous week, volatility persisted in both domestic and international markets. Early in the week, a weakening US Dollar Index (DXY) led several Asian steelmakers, including those in China, to raise their HRC export prices. For instance, China-origin Q235B HRC offers rose to USD 493-520 per ton FOB, up from USD 483-490 the previous week.
However, export offers dropped in the middle of the week as local HRC prices in China continued to decrease. Some Chinese producers reduced their Q235/Q195 HRC export offers for October shipment to Vietnam by around USD 5 per ton to USD 493 per ton CFR Vietnam. Buyers in Vietnam sought even lower prices, with their requests standing at USD 490 per ton CFR.
Vietnamese buyers' interest in Chinese hot rolled coils saw a slight uptick last week, driven by the belief that prices may have bottomed out. Transactions were reported, with Q235 HRC from China sold in Vietnam at USD 492 per ton CFR, while SAE1006 HRC was concluded at USD 505 per ton CFR.
By August 9, the SPCC export price of 1.0mm cold-rolled coil from China continued its downward trend, dropping by USD 9 per ton from the previous week to USD 550 per ton FOB Tianjin.
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