An increase in local HRC prices in China this week has made exporters less aggressive in Vietnam’s import market. Some Chinese suppliers have withdrawn their very low offers voiced last week and most sellers have been willing to sell at prices close to the Hoa Phat prices in the local market. At the same time, the sentiment among buyers has not improved much over the past week.
A contract for 10,000 mt of ex-China SAE1006 HRC has been heard at $805/mt CFR Vietnam, which is up by $15/mt from the lowest level seen in a deal a week ago. Some sources said that this was for January shipment, while some believe that the material will be shipped in December and has been sold by a trader. Local sources in Vietnam said that even Chinese traders and small mills are not voicing offers at below $815-820/mt CFR Vietnam for SAE1006 HRC for January shipment at the moment, while major mills are targeting $840/mt CFR or so.
For SS400, the lowest offers seen at $770-785/mt CFR Vietnam have disappeared this week and new offers from traders and small mills have been at $805/mt CFR or above for January shipment HRC. For February shipment, some HRC is said to be achievable at $795-800/mt CFR. Chinese sellers have started to increase export prices, seeing a rise in the local market, where the average ex-warehouse prices have gained RMB 105/mt ($16/mt) since last Friday.
But “demand is very bad in the current conditions,” a local source said, due to the volatile market and not strong consumption in Vietnam for now. Another market source said, “Demand will get better in the following months.” But the improvement will need time.
Indian mills have returned to Vietnam’s import market with offers at $850-860/mt CFR. And one deal has been rumored at $835/mt CFR, but it could not be confirmed by the time of publication.
The SteelOrbis reference price for imported SAE1006 HRC in Vietnam has been settled at $815-835/mt CFR, up by $10/mt on average from last week.