[SMM Steel] India HRC Exporters Resist Lower Vietnam Bids; Billet Offers at 450-455 USD/tonne FOB

The most-traded HRC contract started stable then rose, closing at 3,244, up 0.22% DoD. In terms of supply, the impact from maintenance on HRC this week was 216,000 mt, down 39,900 mt WoW; next week’s impact is expected to be 116,100 mt, down 99,800 mt WoW, though production remained relatively low. On the demand side, end-users mainly concluded deals at low prices, the spot-futures price spread narrowed slightly, and some positions were added in the futures and physical markets. Raw material side, yesterday two authorities released the 15th Five-Year Plan for the coal industry, and coupled with the strong reality of a shortage in spot coking coal, bulls in the most-traded contracts aggressively bid up prices, lifting the cost support from coking coal and coke somewhat. Looking ahead, as sheets & plates themselves are still in the off-season, this will cap their rebound. However, considering that cost support from below is solid in the short term, sheets & plates are expected to consolidate on a strong note.

[EU] European hot-rolled coil prices edged higher despite limited trading activity during the summer holiday period. Northwest European HRC rose to around EUR 719/tonne ex-works, while Italian HRC was assessed at about EUR 719.5/tonne ex-works. Market participants expect prices to strengthen further into September as reduced domestic output, logistical constraints and tighter import availability limit supply. Competitive imports remain difficult due to trade measures and rapidly exhausted quotas.