Demand for imported hot rolled coils (HRC) in Vietnam has declined further as concerns about the spread of the coronavirus have impacted finished steel consumption and buyers have been looking for lower prices, taking risks into account. Prices for HRC from India and Japan have been the most competitive.
About 20,000 mt of SAE1006 HRC from India were sold at $465/mt CFR Vietnam in the first half of this week. Moreover, one Japanese steelmaker has been offering the same grade coils also at $465/mt CFR and, though there has been no confirmation, some sources said that a contract has been concluded. The previous deals for ex-Japan SAE1006 were signed at $470/mt CFR Vietnam, as SteelOrbis reported earlier. “The Vietnamese market is quite silent now due to the coronavirus as it can speed up. Now there are 35 cases, [more than] doubled,” a local source said.
Offers for SAE1006 HRC from other Indian mills, except those that concluded the contract recently, have been heard at $480/mt CFR Vietnam at a minimum. Japanese sellers are still offering at about $470/mt CFR or slightly above. But “the real market prices are already at $460-465/mt CFR,” a source said.Traders said that bids from some customers have already dropped to $450-455/mt CFR.
Ex-China prices have been less competitive recently as local demand in China has been recovering gradually and sellers have been less aggressive. Offers for SS400 HRC have been at $455-465/mt FOB. Q195 grade coils have still been available at $460-462/mt CFR Vietnam, which is in line with the previous deals for this grade.
The market is waiting for the new prices from local Vietnamese producer Formosa Ha Tinh, which will be published soon, expecting that they will drop by up to $45/mt. Such expectations are connected with the fact that the producer has kept its prices for April stable at $515-520/mt (for SAE1006), while the import market has been weakening.
The SteelOrbis reference price for import SAE1006 HRC in Vietnam has lost $5/mt and has come to $465/mt CFR.