Following the continuous declines in the Chinese HRC futures market, HRC import prices in Vietnam have been lacking clarity, with the general mood among Vietnamese customers being more negative than positive. Thus, by Thursday, October 23, local producer Formosa Ha Tinh Steel (FHS) has revised its domestic offers down for HRC orders of 10,000 mt and above following the initial price announcement on October 10.
More specifically, after the announcement of new local HRC offers on October 10, this week FHS has decided to revise its offers, decreasing them by $11/mt to $511-514/mt CIF for November and December shipments, for 10,000-20,000 mt orders.
“The fact that Formosa has reduced its offers makes the general mood rather pessimistic in Vietnam as this company sets the price trend, though the fact that offers have not dropped below the $500/mt level means that import prices are unlikely to drop sharply in November and there is a chance for stabilization,” a market insider told SteelOrbis.
Meanwhile, import offers for ex-China Q235 2,000 mm HRC have been voiced at $479-482/mt CFR levels, versus $480-483/mt CFR last week. Offers for SAE1006 HRC from India have been voiced at $503/mt CFR for end-of-November shipment, while another Indian producer has been targeting a higher price at $513/mt CFR, according to sources. Besides, offers for ex-Indonesia HRC in Vietnam have settled at $501/mt CFR, for January shipment, down by $7/mt week on week.
The SteelOrbis reference price for import SAE1006 HRC has settled at $495-500/mt CFR, the same as last week.