Following the total panic created by Chinese HRC traders in Vietnam at the beginning of the week, which resulted in a $25/mt price drop for HRC SS400 to $555-565/mt CFR, by the end of the week some upward adjustments have been reported by traders. However, despite the higher offers heard for ex-China materials, most Vietnamese do not consider this price movement to be a rebound, but likely to be “an intention to sell higher before leaving for the holiday, which has mainly failed.”
More specifically, by the end of this week, offers for ex-China SS400 HRC have been voiced at $560-570/mt CFR Vietnam, versus $555-565/mt CFR at the beginning of the week, but still lower by $10-20/mt week on week. Meanwhile, offers for ex-China SAE1006 HRC through traders in short positions have been heard at around $610/mt CFR, compared to $605-610/mt CFR at the beginning of the week, while most Chinese mills have been offering at $625/mt CFR Vietnam. “It is still hard to say where the tradable level is as we don’t hear new deals due to fluctuations in China. Besides, the same day large Chinese mills dropped their offers, traders slightly increased theirs,” a market insider said.
“All are in a holiday mood now. The situation will be clearer by the end of next week,” another source stated.
The SteelOrbis reference price for imported SAE1006 HRC in Vietnam has come to $610/mt CFR on April 28, compared to $605-610/mt CFR at the beginning of this week, though no fresh deals have been reported so far.