The Chinese domestic flat steel market has corrected downwards, Kallanish notes. This weakness has radiated within Southeast Asia's import markets for hot rolled and hot-dipped galvanized coil.

A Chinese trader says he is offering Indian SAE 1006 HRC for shipment by mid-September at $480/tonne cfr Vietnam, down from $480-483/t cfr last Friday. Last week, some bids were as high as $475/t cfr Vietnam but Indian suppliers were unwilling to let go of HRC at that level, Chinese trading sources report. This week, however, Vietnamese buyers are unwilling to pay $475/t cfr because the market has weakened, the trader reports. "It is silent today," an Indian trader said on Tuesday.

There are, however, market participants who report hearing deals taking place last week at $470-475/t cfr Vietnam. Last Friday, Vietnamese traders did not think importers were willing to pay for Indian HRC at above $470/t cfr because the market is grappling with weak demand and high inventories. The Chinese domestic market has peaked, a Hong Kong trader says. Last week, Chinese SAE 1006 HRC offers were all at above $490/t cfr Vietnam.

Chinese HDG export prices appear to have peaked in the Philippines too. Some offers for Z80 1mm base HDG are prevailing at $570/t cfr, compared to offers last week which were as high as $580/t cfr and above.

“It is slightly softer than last week,” a Manila trader says of the HDG market. The last deals he heard transacted were at $565-570/t cfr Manila in mid-July. He says a downward correction was “…bound to happen” because it is hard to believe Chinese demand was enough “…to support record production , reduced exports and sharply increased imports.”