Demand for import HRC in Vietnam has been weak recently and is unlikely to improve ahead of the Chinese Lunar New Year holidays. The latest deals have been done with discounts.
The current workable level for imported SAE1006 HRC in Vietnam has been assessed at $515/mt CFR, in line with the level reported earlier this week, but $5/mt below last week. Some sales of position cargoes from traders have been heard at $515-520/mt CFR this week. Moreover, a contract for 20,000 mt of ex-Japan HRC has been signed at $525/mt CFR, $5/mt below the previous transaction price from the same seller. “As the holidays are coming, the situation is not clear, with conclusions limited,” a Vietnam-based trader said.
Offers from China and South Korea are coming mostly at $520-525/mt CFR, while Indian mills have been insisting at higher levels at $530/mt CFR Vietnam and above. Taking into account the uptrend seen in the local market in India, it is expected that producers may hike prices further up to $520-525/mt FOB. Nevertheless, overall sentiments are bearish in the Asian HRC market.