Prices for imported HRC in the Vietnamese market have improved this week even despite still weak demand. Local HRC prices in China have surged after the holiday, and so the majority of sellers have kept their export prices stable or have increased them to Vietnam.
According to sources, most large traders and steel mills from the north of China have voiced offers for SAE1006 HRC at not below $690/mt CFR, while most of them have been insisting on $700-710/mt CFR. Offers for HR strip have increased to $675/mt CFR. “The sharp rise in the local market in China has made traders cautious. They don’t want to offer low,” a trader said.
At the same time, demand from Vietnam has remained extremely weak and buyers are not in a mood to resume purchases until the trend becomes clear - by the end of next week.
Indian mills have been willing to resume sales to Vietnam, offering more competitively than earlier prices - at $750/mt CFR. Taking into account the latest sale from India to the Middle East, some sellers may consider up to $10-15/mt discounts, if they see interest from customers in Vietnam.
Offers for SAE1006 HRC from S. Korea and Japan have been reported at $780-790/mt CFR.
The SteelOrbis reference price for import HRC in Vietnam has increased indicatively by $10/mt over the past week to $670-675/mt CFR.