Following the continuous fluctuations of import HRC prices mainly caused by ups and downs in futures and local HRC prices in China, Vietnamese customers have managed to book ex-China HRC this week. However, according to sources, higher trader activity was mainly driven by buyers’ necessity to replenish their stocks rather than by demand improvement in the country.
More specifically, following a deal for 10,000 mt of ex-China SAE1006 HRC signed at $580/mt CFR at the beginning of this week, up by $5/mt week on week, by Tuesday, September 21, according to sources, new deals for around 30,000 mt in total have been reported at $574-575/mt CFR for November shipment, though this information has not been officially confirmed by the time of publication. Meanwhile, offers for ex-China SAE1006 HRC have been still voiced at $575/mt CFR, while bids have been reported at around $570/mt CFR and below levels.
“It is actually hard to understand what is the workable level for imported HRC as most Chinese sellers are not giving firm offers now, expecting some clarity, while most buyers are not interested in new bookings due to slow demand,” a market insider said.
Meanwhile, at the beginning of this week, China SS400 HRC offers in Vietnam were reported at $555-560/mt CFR, up by $10-20/mt week on week, while offers for Q195 were heard $545-550/mt CFR, up by $5-10/mt. However, by the end of the week, offers from Chinese traders for both Q195/SS400 HRC have dropped to $540-545/mt CFR, while bids have been reported at $538/mt CFR.
“Further price trend lacks clarity, deals have been still occasional in Vietnam as demand remains weak. Several small deals were done for Q235 and Q195, with discounts, and for SAE1006 as customers needed to replenish stocks,” a Vietnamese trader told.
The SteelOrbis reference price for import SAE1006 HRC have moved to $570-575/mt CFR, versus $580/mt CFR at the beginning of the week, mainly based on ex-China offers and bids from customers, while other suppliers have remained out of the Vietnamese market, with indicative offers for ex-Japan HRC estimated at $590/mt CFR, down by $10/mt week on week.