HRC import offers in Vietnam have risen further this week for mainly pipe-making grades, tracking gains in Chinese prices amid a continued rally in Shanghai HRC futures prices. By contrast, SAE1006 re-rolling grade HRC offers have been held largely steady as most non-Chinese suppliers took a wait-and-see approach, lifting prices only marginally while some have kept them unchanged.
More specifically, this week, ex-China 2,000 mm Q235 HRC offers, which are not targeted by antidumping (AD) duty, have been voiced at $490-495/mt CFR compared to $486-488/mt CFR last week. Meanwhile, offers for ex-China SAE1006 HRC have been estimated at $500-505/mt CFR, the same as last week. Such an increase in ex-China offers is explained by the increase in HRC futures prices, which by July 30 have settled at RMB 3,483/mt ($487/mt), increasing by RMB 45/mt ($6.3/mt) or 1.3 percent since July 23, while increasing by 0.81 percent compared to the previous trading day, July 29.
“The Chinese market is currently digesting last week’s rapid price gains. The backdrop is positive, supported by a partial trade agreement between China and the United States and the announcement of a high-level government meeting scheduled for October. At the same time, mills’ operating conditions have remained largely unchanged, keeping the market balanced in terms of demand, while sentiment is stronger than usual,” a Chinese trader told SteelOrbis.
At the same time, despite the reduced competition from Chinese SAE1006 HRC suppliers due to the antidumping duty, other foreign suppliers have been slow to adjust their offers upward. According to sources, offers for ex-South Korea SAE1006 HRC have remained at $500-510/mt CFR this week, mainly for October shipment. Besides, offers for ex-Japan SAE1006 HRC have been voiced at $515/mt CFR for September shipment, up by $5/mt on the lower end of the range week on week.
Furthermore, offers for ex-Indonesia SAE1006/SS400 HRC have been voiced at around $505/mt CFR for September and October shipment, the same as last week.
As a result, the SteelOrbis reference price for imported SAE1006 HRC has remained stable at $500-505/mt CFR, while trade activity has still been slow due to the weak demand in the country.