Prices in the import HRC market in Vietnam have posted another increase this week. Most offers are coming only from China, as other foreign suppliers have been focused on other destinations. Meanwhile, Vietnamese buyers’ focus has mainly been on local purchases after major domestic producers announced their new prices for May shipment last week.
The latest deal for ex-China SAE1006 HRC was done at $905/mt CFR for May shipment early this week, up by $5/mt week on week. However, ex-China HRC offers have increased to $910-920/mt CFR by the end of the week, and some offers from mills have even been heard at $950/mt CFR. Meanwhile, after several deals for ex-China SS400 HRC were reportedly done at $865/mt CFR, new offers have been voiced at $870-880/mt CFR Vietnam by the end of the week. But overall demand has declined even further this week as, “although Formosa is offering SAE1006 HRC at $930/mt CFR which is higher than the Chinese, local buyers can achieve discounts, while Hoa Phat Group offers at $910-912/mt CIF,” a source said.
Meanwhile, other foreign suppliers have been staying out of the Vietnamese market. The indicative offer for ex-Japan SAE1006 HRC has been voiced at $1,030/mt CFR Vietnam, up by $30-50/mt over the past week.
Vietnamese producer Formosa Ha Tinh Steel has announced its new prices for May shipment of non-skin passed SAE1006 coils at $930/mt CFR, increasing them by $90/mt since last month. Given the weak consumption in Vietnam even though customers are in the market for local sourcing at the moment, HRC exports from Vietnam may rebound in the near future. In particular, according to sources in southern Europe, HRC offers from Vietnam have been voiced at around $1,365/mt CFR, while HRC buyers in Spain have reported Vietnamese HRC offers even at €1,275/mt CFR, while translates to around $1,400/mt CFR.
The SteelOrbis reference price for import SAE1006 HRC has moved up to $910-920/mt CFR, compared to $900-905/mt CFR last week, considering further the rebound in Chinese offers amid better sentiments in the futures market in China.