The situation in the imported HRC market in Vietnam has worsened over the past week as the rising Covid-19 cases have been putting big pressure on end-users' demand. Most exporters have been trying to hold prices or try to increase them, but sources said that the demand issue has been much more important than prices at the moment.
Only one deal for a small tonnage of ex-India SAE1006 HRC has been heard this week at $925/mt CFR Vietnam. Last week rare transactions were at up to $930/mt CFR for the same origin of rerolling coils. “Demand is not here, even local mills target exports now,” a trader said.
A contract for SS400 HRC from India was at $910/mt CFR last week, but this week no new deals for this grade have been reported.
Indian suppliers have been the major exporters to Vietnam lately and they are expected to attempt price increases in the near future, as local sales are showing some signs of improvement and highly-possible export duty on Chinese HRC may also support ex-India offers. But “they may increase prices, but demand here is the main problem,” a trader said.
Chinese mills have mostly withdrawn offers in the export market, as “we are waiting for some clarity early next week [about export duty on HRC],” a Chinese source said. Local HRC prices in China have increased by RMB 100/mt ($15.5/mt) to RMB 5,955/mt ($922/mt) ex-warehouse, according to SteelOrbis.
The reference price for imported SAE1006 HRC in Vietnam has been settled at $925/mt CFR this week.