Chinese HRC suppliers have remained aggressive in the Vietnamese market with some deals for SAE1006 coils already being done at below $800/mt CFR. This has kept sentiments still bearish, while overall demand has been reduced.
One Vietnamese customer has purchased at least 10,000 mt of ex-China SAE1006 HRC from a relatively small Chinese mill at $790/mt CFR for January shipment this week. “This mill is usually offering a very low price, in line with traders,” a market source commented, adding that the bigger Chinese mills are still asking $830-840/mt CFR.
A contract for SAE1006 HRC for January shipment was done at $820/mt CFR Vietnam early this week. “I do not see prices lower than $820/mt CFR,” another source said, commenting on the prices for mills’ or large traders' January shipment cargoes.
Prices for traders’ short position SAE1006 coils have reported at $800/mt CFR for February shipment, down by at least $10/mt from last week, but the tradable level is below this level already.
Overall demand for import HRC in Vietnam has been reduced as buyers are cautious in the falling market and consumption has also been lower recently. Customers have been focused on the local coil purchases with the latest level for ex-Hoa Phat HRC was at $835-840/mt CFR.
In the SS400 coils segment, the lowest prices from Chinese traders for February shipment and beyond are at $770/mt CFR with no new deals done.
The SteelOrbis reference price for imported SAE1006 HRC has fallen further by the end of this week to $790-840/mt CFR, with the midpoint at $815/mt CFR, down by $20/mt from the level seen earlier this week and down $25/mt from last week.