This week has started with another increase in ex-China HRC prices in Vietnam, given the upward trend in the domestic Chinese HRC market supported by increasing HRC futures prices. However, while some Vietnamese buyers have continued to push for additional discounts from traders who are selling without VAT, most sources believe higher prices will be seen in new deals in the short run.
More specifically, offers for ex-China SAE1006 HRC have been voiced at $585-590/mt CFR, as compared to deal prices at $565-570/mt CFR last week. However, according to sources, some Vietnamese buyers have kept negotiating at $575/mt CFR. “It is hard to say where the workable level stands nowadays, as, while some bids are still voiced at $575-580/mt CFR, suppliers are aiming not lower than $585/mt CFR. Maybe traders who sell without VAT could accept $575/mt CFR, but in general most suppliers are bullish,” a market insider said.
Offers for ex-China SS400 HRC have been voiced at $565-570/mt CFR, up by $5/mt over the past week, though several deals have been reported at $560/mt CFR, versus $550/mt CFR last week, for ex-China materials sold by traders who are dealing within the scope of the non-VAT trading policy.
Meanwhile, rare offers for ex-India HRC from traders have been heard in Vietnam at $590/mt CFR, the same as last week. Besides, suppliers from Japan have kept offering their SAE1006 HRC at $620/mt CFR.
At the same time, local producer Formosa Ha Tinh Steel, which has been offering its HRC to local buyers at $595-610/mt CIF, has continued to be more interested in selling its materials abroad. Thus, according to sources, around 65,000 mt of ex-Formosa HRC have been sold to India at $612-615/mt CFR, which corresponds to around $595/mt FOB.
The SteelOrbis reference price for import SAE1006 HRC has moved to $580-585/mt CFR, from $575-585/mt CFR, as even though some buyers still aim for $575/mt CFR, most suppliers consider this level as “hardly workable” anymore.
