Import HRC prices have continued to fluctuate this week in Vietnam. While some Chinese traders were offering lower levels at the end of last week and the beginning of this week in an effort to boost sales, others viewed the market as relatively stable. Besides, a number of Chinese sellers even raised their offers to Vietnamese buyers, citing recent news about the easing of trade tensions between the US and China, while offers from other Asian suppliers have shown a slight upward bias as well.
More specifically, by Thursday, May 15, offers for ex-China 2,000 mm Q235 HRC, which are not targeted by AD duty, are reported at $475/mt CFR for July shipment, compared to $465-475/mt CFR at the beginning of the week, and up by $5/mt since the end of last week. Besides, higher offers for this grade and size at $480/mt CFR have also been available in the market, while ex-China 2,000 mm Q355 HRC has been priced at $490/mt CFR.
Such an increase in ex-China prices is explained by the recovery of HRC futures prices amid the recent announcement of the US and China of a 90-day pause on "reciprocal" tariffs starting from May 14, which will lead to the US tariffs on Chinese imports retreating from 145 percent to 30 percent, while Chinese tariffs on US imports will fall from 125 percent to 10 percent, bolstering market sentiments firmly and resulting in better transaction activities.
Furthermore, indicative offers for ex-China SAE1006 HRC have been voiced at $490-495/mt CFR, compared to $485-495/mt CFR last week, though buyers are unwilling to pay the duty, effectively eliminating demand for this grade.
As for other Asian HRC exporters, offers from Indonesia for SAE1006 HRC have been voiced at $510-515/mt CFR for July-August shipment, compared to $508/mt CFR last week. Also, there has been a rumour about an ex-South Korea HRC sale for this grade at slightly above $510/mt CFR. This means that with the current duty on Chinese HRC and uncompetitive ex-China SAE1006 prices, some Asian mills are benefiting. Besides, while most bids for ex-Japan SAE1006 offers for ex-Japan SAE1006 HRC have been voiced at $500/mt CFR, most offers have been reported at $510/mt CFR for mainly July shipment, though higher offers at $515/mt CFR have also been heard in the market.
As a result, the SteelOrbis reference price for import SAE1006 HRC has moved to $490-510/mt CFR, up by $5/mt week on week.