Following the continuous fluctuations in HRC import prices caused by turbulence in the HRC futures market in China, this week has started with sharp increases in import prices in Vietnam. However, according to sources, customers managed to purchase several big batches for ex-China and ex-India HRC at lower levels last week, anticipating price rebounds.
More specifically, market insiders have reported several deals for at least 20,000 mt in total of ex-China SAE1006 HRC at $565-570/mt CFR last week, while new offers have increased to $590/mt CFR this week. However, Vietnamese buyers commented, “It is still possible to negotiate and reach around $575/mt CFR in new deals”. Besides, more deals for around 20,000-30,000 mt in total of ex-India HRC were signed at $580-585/mt CFR at the end of last week, while some traders in Vietnam even say the price was at $578/mt CFR in one of the ex-India contracts. However, this week, offers for ex-India HRC have been voiced at $590/mt CFR and above.
Other suppliers of SAE1006 HRC like those from Japan have been offering their materials at around $620/mt CFR, according to sources.
Meanwhile, offers for ex-China SS400 HRC have been voiced at $550/mt CFR from Chinese traders who are dealing within the scope of a non-VAT trading policy, up by $5-15/mt week on week, while offers from other Chinese suppliers have been heard at $560-565/mt CFR.
At the same time, local producer Formosa Ha Tinh who increased its HRC offers for local buyers to $595-610/mt CIF last week, has been more interested in selling its materials abroad, given the tough competition with foreign suppliers. Thus, according to sources, around 33,000 mt of ex-Formosa HRC have been sold at around $595/mt FOB to several buyers globally.
The SteelOrbis reference prices for import SAE1006 HRC have settled at $575-585/mt CFR with the lower end of range corresponding to buyers’ price idea for ex-China HRC even though higher offers have already been voiced by most suppliers.