SINGAPORE August 07 2015 11:21 AM
SINGAPORE (Scrap Register): ASEAN hot rolled cold (HRC) steel import prices (CFR ASEAN port) continued to remain flat at $318 a ton in the week ended July 24, as per the latest figures released by The Steel Index.
According to TSI, news of tightening air pollution controls within the Tangshan region, in China’s steelmaking hub – Hebei Province, initially bolstered sentiment to drive domestic steel prices higher, as the expectation of supply shutdowns grew.
Export offers also increased, though buyers were in no mood to pay more for steel. Their skepticism meant bids stayed largely flat and transaction prices were stable close to last week’s level.
Chinese-origin SAE grades for September shipment were offered between $315-325 a ton CFR ASEAN port. Reflecting a more bearish outlook in the market, some traders were reportedly offering material for October shipment as low as $305 a ton. Asking prices for SS400 grades were heard between $310-317 a ton.
Japanese-origin HRC was offered in the $350-360 a ton range, but market participants were expecting that steel producers would reduce their asking prices by about $10 a ton in the near-term to be more competitive with Chinese material.
Meanwhile, 4kt of ASEAN HRC coil swaps (basis TSI) were cleared this week on SGX.