The situation in the Vietnamese HRC market has continued to be bearish this week with buyers signing deals at lower levels with Chinese suppliers and with overall expectations of further drops persisting.
Offers for SAE1006 HRC from Chinese suppliers have decreased to $895-910/mt CFR, down by $5-15/mt over the past week. This week, a contract for 100,000 mt in total of SS400 and SAE1006 grade coils from a big Chinese mill has been reported in Vietnam at $870/mt CFR for SS400 and at $905/mt CFR for SAE1006 HRC, according to market sources. Besides, there were talks about a deal for around 20,000 mt of ex-China SAE1006 signed through a trader with a position at $895/mt CFR, though this information was not confirmed by the time of publication.
Furthermore, after a deal for around 35,000 mt of ex-China SS400 HRC was reportedly signed at $860-865/mt CFR last week, new position offers from Chinese traders for SS400 coils have been voiced at $855-860/mt CFR Vietnam.
“Slow local demand in China is affecting Chinese prices and it is not easy for Chinese mills to export HRC to higher-priced markets such as Europe, the Middle East, etc.,” a Chinese trader told SteelOrbis.
Other foreign suppliers like those from India, Japan and Taiwan have continued to stay out of the Vietnamese market. However, according to market insiders, an indicative offer for Russian HRC appeared in Vietnam at $750/mt CFR this week, but “the point is payment and the long delivery for Russian coils,” a Vietnamese trader said.
The SteelOrbis’ reference price for import SAE1006 has moved to $895-910/mt CFR, compared to $900-925/mt CFR last week, considering the recent deals signed with Chinese suppliers and the continuous drop in offers coming from China.