Though bearish sentiments still prevail in the Vietnamese HRC market, most major sources have been refusing to reduce prices further, saying that prices have already dropped significantly and that there is still time to wait for customers from other markets, SteelOrbis has learned.
Ex-Russia HRC price levels from mills have not fallen below the $880/mt CFR Vietnam voiced early this week. “I think that discounts of not more than $5/mt are possible. Mills are not in a rush,” a local trader said. There has been a rumour about a sale at $865-870/mt CFR in the middle of the week, which has been denied by a number of sources. Customers from Vietnam have been under pressure from weak finished steel demand and the lockdown in the south is likely to be extended by the end of September, but suppliers have not been too aggressive. “Iron ore is rebounding and September is around the corner, and so what is the reason for them to go much lower?” a market source commented.
Offers from Indian have been heard at $890/mt CFR, with some mills considering to sell at this level after the local tradable price level weakened further. Traders may provide some lower offers - at $880-890/mt CFR Vietnam.
The reference price for imported SAE1006 HRC in Vietnam has remained at the level settled in the middle of the week - at $880-890/mt CFR.
