Vietnamese customers have continued to show very limited interest in HRC imports over the past week considering the still weak demand and high levels of stocks. At the same time, the price trend has been unclear this week, as, on the one hand, there has been some talk about offers and deals at lower levels in Vietnam, while, on the other hand, some suppliers have decided to go slightly higher.
Accordingly, the prices available for ex-China position SS400 HRC have been voiced at $570-585/mt CFR, with several deals signed at $570-575/mt CFR Vietnam, which corresponds to last week’s deal prices. Meanwhile, offers for ex-China SAE1006 HRC have remained extremely limited in Vietnam this week, with the indicative level standing at around $600-610/mt CFR, down by $5-10/mt week on week.
In the meantime, the prices available for ex-Taiwan SAE1006 HRC have been reported at $600-610/mt CFR, compared to $590/mt CFR last week. Besides, according to market insider, a deal for 20,000 mt of an ex-Taiwan mixed cargo, including SS400 HRC and SAE1006 HRC, was signed at $590-610/mt CFR at the end of last week. At the same time, the indicative prices for ex-Japan SAE1006 HRC and ex-India boron-added coils have remained at $600/mt CFR, the same as last week. Besides, according to market sources, one deal for a mixed cargo of SS400 and SAE1006 HRC from India to Vietnam has been rumoured at $580/mt CFR on average. However, this information has not been confirmed by the time of publication. “Most Indian mills are actually looking for $600/mt FOB. We doubt Vietnam will accept it, but let’s see what price Formosa Ha Tinh Steel will announce,” a market insider said.
Market participants are expecting local HRC producer Formosa Ha Tinh Steel to announce new prices next week. “Formosa may keep prices stable [at $610/mt CFR] in the next round considering the current market fundamentals,” one of the biggest Vietnamese re-rollers told SteelOrbis.
“Many blast furnaces are closed in Europe because of high energy prices. Additionally, large fires just happened at POSCO and Hyundai Steel facilities yesterday. Together with the typhoon in Korea, their supply chain may be broken in a short period of time,” another source stated.
Furthermore, sentiments differ in Vietnam, and, while some Vietnamese customers are still pessimistic, others are more positive in terms of demand and the future price trend as “the building season is coming soon, from October in Asia, including Vietnam.”
The SteelOrbis’ reference price for import SAE1006 HRC in Vietnam has settled at $590-600/mt CFR Vietnam, compared to $590-595/mt CFR last week.
