Following the decline in local HRC prices announced by Vietnamese mill Hoa Phat Group on Tuesday, March 5, due to the fall in import prices, the bearish mood has kept mounting in the import HRC segment, while trade activity has remained rather limited as buyers expect import prices to edge down further.
The latest offers for ex-China Q195/SS400 HRC mainly from Chinese non-VAT traders have been reported at $535-543/mt CFR for April-May shipment, against 542-545/mt CFR at the beginning of this week and down by $7-10/mt week on week. According to sources, following several deals for Q195 HRC reported at the beginning of the week at $537-540/mt CFR for April shipment, new deals have been heard at $530-535/mt CFR by Thursday, March 7. Besides, offers for Q235 HRC have been voiced at $540/mt CFR, down by $5/mt week on week.
Meanwhile, offers for SAE1006 HRC have been rare in Vietnam, with the indicative offers from Chinese traders estimated at $580/mt CFR for April-May shipment, down by $5-10/mt week on week, while offers from Chinese mills have still been estimated at around $590/mt CFR. Besides, several offers for ex-Taiwan SAE1006 HRC via traders have been reported at $590/mt CFR for the same shipment period. “Some Vietnamese customers expect workable prices to decrease to $565/mt CFR, though only from non-VAT traders, while mills are unlikely to drop their offers to this level,” a Vietnamese trader told SteelOrbis.
The SteelOrbis reference price for import SAE1006 HRC has moved to $580-590/mt CFR, down by $5/mt on the lower end of the range week on week since, despite the sharp drop in price for ex-China pipe-making HRC, discounts for SAE1006 HRC have been rather limited, while trade has remained poor so far.
