Prices for import HRC in the Vietnamese market have decreased further this week, and, although trade activity has been limited this week, several deals have been reported for ex-China HRC booked in short positions. According to sources, although by the end of the week Chinese HRC futures have recovered to some extent, the downtrend of ex-China offer prices is expected to persist after the Chinese National Day holiday (September 29-October 8).
Before closing for the holiday, Chinese suppliers have decreased their offers for SAE1006 HRC to $568-570/mt CFR Vietnam, down by $2-5/mt week on week. According to sources, a deal for around 5,000 mt has been reported at the lower end of the range, though, in general, trade has remained muted in Vietnam amid the lack of demand in the country.
Meanwhile, several deals for ex-China Q195 HRC have been reported at $532-535/mt CFR, versus $540/mt CFR last week. Besides, most offers for ex-China SS400 HRC have been voiced at $535-540/mt CFR, versus $540-545/mt CFR last week.
“Some trade activity has been heard in South Korea, with several batches for around 30,000 mt of SAE1006 and SS400 HRC sold at $560-565/mt CFR, while deals in Vietnam have been limited and for small tonnages only,” a Chinese trader told SteelOrbis.
According to most market insiders, China has a limited upside potential after the holiday amid a strong possibility of a further weakening of the yuan, while demand in October is unlikely to exceed September’s consumption, which traditionally is higher.
“After a sharp drop in HRC futures prices during most of the week, by the end of week we saw some recovery, but it didn’t give any hope for an ex-China price recovery. Perhaps they [prices] might stabilize,” a market insider said.
The SteelOrbis reference price for import SAE1006 HRC has moved to $568-570/mt CFR, versus $570-575/mt CFR last week, mainly based on ex-China offers, while other suppliers have remained out of the Vietnamese market, with indicative offers for ex-Japan HRC estimated at $590/mt CFR, the same as last week.