Aggressive ex-India offers push HRC prices further down in Vietnam

Thursday, 26 March 2020 16:49:47 (GMT+3)   |   Istanbul
       

The situation in the Vietnamese HRC market has worsened as re-rollers began considering production stoppages, with some importers being forced to cancel previous contracts, while import prices have continued to drop every day this week, SteelOrbis has been informed.

Early this week, a deal for ex-India SAE1006 has been done at $430/mt CFR Vietnam, but late this week there has been information spread in the market that another contract has been concluded at $410/mt CFR. A number of sources have confirmed that this deal has been done, though the quantity is unknown by the time of publication. Offers for Indian coils have been heard mostly at $415-420/mt CFR Vietnam today, Thursday, March 26, and bid prices have been at $410/mt CFR and below.

Offers for ex-China SAE1006 have been heard at $435-440/mt CFR Vietnam during the week and at $430-435/mt CFR for SS400 HRC. Nevertheless, the tradable value for SAE1006 coils has already slipped to $420-425/mt CFR. “Suppliers can give this, but who will buy,” a local trader said.

Prices for ex-Russia HRC to Vietnam have been at $430-435/mt CFR, similar to the level early this week, but no deals have been reported so far.

“All pipe, GI makers got order to cancel or delay bookings. All liquidity is freezing. Cash flow is now very critical,” a Vietnamese-based source said.

The SteelOrbis reference price for imported HRC in Vietnam has fallen by $25-35/mt over the past week to $410-430/mt CFR. Sources believe that, after such a rapid fall prices are close to the bottom at the moment. “I don't think it can go much lower as it will hit the variable cost for most mills,” a Singapore-based trader said. 


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