Sentiment in the Vietanemse HRC market has worsened this week. While suppliers are still offering at higher levels, bids from most major customers have declined and trading activity has slipped. New Covid-19 cases in Vietnam have raised worries about the market development in the near future.
After deals at $470-475/mt CFR from India last week, another deal for a small volume from JSW Steel was heard at $480/mt CFR Vietnam, signed late last week. But this week bids have fallen to $470/mt CFR and below with no new deals reported over the week so far. “The Vietnam market is digesting $455-460/mt CFR this week. Demand is weak. The Asian market can not absorb the price increase. Only China stays at a high price,” a local trader said. There has been information about a contract at $460/mt CFR Vietnam from Turkey, but this has been disproved by the time of publication. Most sources agree that, even taking into account lower bid prices, most sellers are not ready to provide such a low level for now.
Offers from India have been mostly at $480/mt CFR and sellers have confirmed that the tradable level for them is not below $475/mt CFR for now. The real price from Turkey to Vietnam is “definately higher than from India,” a source said. Offers from one of the Japanese mills have been heard at $500/mt CFR and above.
Last Friday, Vietnam reported new infections of Covid-19 after being virus-free for the past three months. Vietnam's government said that the whole country is at risk from the spread of Covid-19 again as an outbreak linked to Da Nang spreads. The prime minister ordered Da Nang residents to re-implement social distancing and to close all non-essential services. Since Friday, in total 34 new cases have been registered so far. “This [new cases and restrictions] has weakened sales of end products and the sentiments of buyers in general. That's why we are seeing lower bids [for imported HRC],” a trader said.
The SteelOrbis reference price for imported HRC in Vietnam has decreased slightly to $470/mt CFR, from $470-475/mt CFR last week.
