Asian hot-rolled steel coils continue to decline, with light trading in the Middle East market

China Export
In terms of hot-rolled steel coils, the export prices of ordinary material steel coils were first suppressed and then increased this week. Currently, the mainstream export prices of northern steel mills SA1E steel are between 525-530 US dollars per ton FOB, and the shipping schedule is generally in December, with a small number of orders closed. It is understood that the export orders for hot rolled steel coils in December have decreased compared to October, but overall they are still at a high level. In addition, due to weak domestic demand, Vietnam Formosa Plastics Hejing has lowered the price of SAE1006 hot-rolled steel coils for delivery in December by $10-20 per ton to $560-570 per ton CIF Ho Chi Minh City. Although Formosa Plastics has lowered the delivery price, for Vietnamese traders, the cost of purchasing Chinese cold-rolled steel still has a price advantage, with resources in Japan and South Korea both exceeding 570 US dollars per ton of CFR.

Due to poor demand in Southeast Asia, the prices of hot-rolled steel coils in Asia have shown a downward trend this week. In terms of the import market, the quotation for imported SS400 (3mm) hot-rolled steel coils from China is $520 USD/ton FOB, with a decrease of about $5 USD/ton compared to the previous month. The price for imported hot-rolled steel coils from other Southeast Asian markets is $500 USD/ton FOB. The export of hot-rolled steel coils SA1E steel has been relatively stable. It is reported that traders recently received a quotation for SS400 hot-rolled steel coils from a small factory in northern China at $530/ton CFR Vietnam, while other Southeast Asian countries will quote lower prices than $530/ton CFR Vietnam. Considering that shipping costs will be lower. The shipping cost from China to Vietnam is around $13 per ton.

In terms of the Vietnamese import market, the price of Q195 (3mm) is 520 US dollars per ton CFR Ho Chi Minh. Due to the frequent rainy season in Vietnam recently, the demand is not very substantial. Considering the weak transaction, Formosa Plastics did not provide a quotation yesterday. Indonesia's SAE1006 hot rolled steel coil resource (from Vietnam) has an average price of $630 per ton of CFR Jakarta hot rolled steel coil, and the market is relatively stable with no changes compared to last month. The quotation for Japan's SAE1006 hot-rolled steel coil (December shipment) is at 580 US dollars per ton CFR Vietnam, which has a competitive advantage compared to Formosa Plastics. However, later this week, Formosa Plastics Hejing lowered the price of SAE1006 hot-rolled steel coil SA1E steel by $10-20/ton to $560-570/ton CIF Ho Chi Minh. Its Q195 price is on par with the price of hot-rolled steel coil of the same material in China, so local traders may be more inclined to purchase Formosa Plastics resources.

India
In terms of the Indian market, during the Diwali Festival, the prices of local hot-rolled steel coils continue to show a downward trend. The price of IS2062 (2.5-10mm) SA1E steel excluding taxes is at $680/ton EXW Mumbai, which is about $10/ton lower than the previous day. It is expected that the decline will continue next week. The current poor demand for hot rolled steel coils in the local market is partly due to the strong advantage of imported hot rolled steel coils. The price of hot rolled steel coils exported from China (BIS certification resources) is around 580 US dollars per ton CFR Mumbai, and it is expected that there will still be room for a decrease in transaction prices.

Middle East
In the past week, the domestic price and import and export price of Türkiye's hot rolled steel coils have stabilized, and the market transaction is relatively cold. As Türkiye's steel demand continues to remain low, combined with production costs