Chinese hot rolled coil export prices have fallen steadily over the last week as mill offers have come down around $25/tonne over the last fortnight. Although there are more deals than last week, most Asian buyers are still holding out for lower prices, Kallanish notes.

Mills were offering 2mm SAE1006B at around $390/t fob this week, although a couple of the lower tier mills were quietly offering just below this level. Vietnamese buyers reported deals at around $395/t cfr for rerolling 2mm SAE1006B, and $390/t for pipe making HRC. A cargo of pipemaking HRC was reportedly sold at $382/t cfr for December delivery but this was said to be a trader short selling.

The market has its eyes firmly set on the post-holiday price trend. In the next couple of weeks trading is expected to be limited unless mills give way and lower offers further. Buyers are wary of a price increase in the next week or so if domestic prices also rebound, but they expect prices to be steadily lower as the year progresses.