The demand situation in the Vietnamese HRC market has not improved over the past week due to the continued lockdown and as most buyers have been waiting for new local coil prices next week before concluding import deals. At the same time, prices for ex-CIS HRC are still the most competitive.
For instance, offers for ex-Russia HRC have been heard at $865-870/mt CFR Vietnam, but no deals have been reported so far, though this has been the lowest available level for now. In addition, a mill from Kazakhstan has started to offer to Asia at below $900/mt CFR. “Nothing changed [in terms of demand]. Vietnamese buyers are waiting for a response from Formosa next week,” a local trader said.
Formosa ha Tinh is expected to announce its new local and export HRC prices next week. Market sources believe that prices for local customers will go down to around $920-940/mt CFR for November shipment, down from $955-960/mt CFR a month ago. It is unlikely that Formosa Ha Tinh will cut prices more than that, even though some buyers are waiting for $900/mt CFR. The main reason is the close observance by the Vietnamese mill of the situation in China, where prices have been on a rebounding trend recently.
Though CIS-based suppliers have not been successful in sales to Vietnam, they have been looking for other markets in Asia. In particular, a contract for ex-Russia HRC has been rumoured at $870/mt CFR to Taiwan, and, though this could not be finally confirmed by the time of publication, taking into account that local prices for re-rolling HRC are mostly below $980/mt ex-works, this sale is possible, market sources said. Offers from Russia and Kazakhstan for HRC have been at $920/mt CFR to Pakistan this week, but no deals have been reported so far.
An ex-India position cargo from a trader has been on offer at $890-900/mt CFR in Vietnam this week, while offers from mills have been at $900-920/mt CFR in the country. Since Indian suppliers were able to find some takers in Turkey and S. Korea, they have not been in a rush to cut prices much in the weak Vietnamese market.
“Now price is not an issue, the issue is demand,” an Asian source said, describing slow demand in most Asian countries due to the lockdowns.
The reference price for imported SAE1006 HRC in Vietnam has widened by $10/mt over the past week to $870-900/mt CFR, though the average level has remained stable at $885/mt CFR.
