Southeast Asia HRC fell by US$70/ton on a week-on-week basis (6.17-6.24)

【Market Overview】
Domestic trade in China:
The average price of domestic hot-rolled coil market fell sharply this week. The price of 3.0mm hot-rolled coil in 24 major markets across the country fell by 276 yuan/ton from last week; the average price of 4.75mm hot-rolled coil fell by 277 yuan/ton from last week. Next week, the fundamentals of the market will still be deviated, the confidence in the market mentality will be insufficient, and the need for replenishment will still be deviated. The wait-and-see mood is reflected.

Exports from China:
The mainstream export price of SS400 hot-rolled coil in Tianjin Port is US$660/t fob, with some steel mills offering as low as US$640/t fob. At the same time, Vietnam’s Hoa Phat Steel announced the quotation for HRC for shipment from August to early September. The base price of SS400 HRC is US$695/ton CIF, and Formosa Ha Tinh also lowered the quotation for SAE1006 HRC to US$720/ton CIF Ho Chi Minh city. As a result, customers from Southeast Asia further lowered their inquiries for Chinese hot coils, and many orders were filled.
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Southeast Asia:
Affected by the Fed’s rate hike, coupled with weak demand, the market has a strong bearish sentiment. This week, the import price of hot rolled coils in Southeast Asia fell significantly, falling by US$60/ton on a week-on-week basis to US$645/ton CFR Southeast Asia.
This week, Vietnam Hoa Phat Steel announced its latest offers for hot rolled coils for shipment from August to early September, at $695/t for SS400 and $705/t for SAE1006. The price was well above the market’s tradable level, and buyers were reluctant to place orders and wait for the company to further revise the offer.

India:
India is in the monsoon season, market demand continues to be sluggish, pessimism spreads, and buyers take a wait-and-see attitude. This week, the price of domestic hot-rolled coil in India was stable compared with last week, and the spot price delivered to Mumbai was US$780/ton. Sources say a batch of SAE1006 grade Russian HRC is trying to enter the Indian market at $600/t cfr Mumbai, and if successful, local mills will have to cut prices significantly.
Since the introduction of the export tariff policy, export activity has been sluggish, and the current export price of Indian HRC is about $700/ton FOB, down $80/ton on a week-on-week basis. It is understood that India’s SAE1006 grade boron-containing hot-rolled coils are now quoted at US$755-765/ton cfr to the United Arab Emirates and US$710-720/ton cfr to Vietnam, and do not need to pay export tax.

Europe:
This week, the mismatch between supply and demand in the European steel market has not been alleviated, and steel mills have cut production in order to slow down the decline in steel prices. At present, the mainstream HRC price in the EU is US$920/ton, a month-on-month decrease of US$220/ton, and the mainstream import price is US$855/ton, a month-on-month decrease of US$100/ton.
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Currently, boron-bearing hot rolled coil is quoted at $765/t cfr in India, $795/t cfr in Japan, and $820/t cfr in South Korea. Although the price of imported resources is more advantageous, buyers prefer local resources due to long delivery times and market uncertainty.

U.S:
Downstream activity has taken a hit since the Fed announced a rate hike, and the market has been further bearish, with buyers making only essential purchases. At present, the ex-factory price in the US Midwest is $1,170/ton, down $280/ton month-on-month, and the import price is $1,140/ton, down $220/ton month-on-month.
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