Major suppliers have increased offer prices for hot rolled coils (HRC) to Vietnam, seeing an improvement in the Chinese market and in demand there. Vietnamese importers are mostly evaluating the situation for now, but some increase has already been accepted.
Offers for Indian SAE1006 HRC have been at $440-445/mt CFR Vietnam recently. Last week, a deal for HRC of the same origin was signed at $418/mt CFR and bids have already increased further this week. A contract for 80,000 mt of Indian HRC has been closed at $430/mt CFR or slightly below, sources have said. Most bids have been heard at $425-430/mt CFR recently.
South Korean and Japanese suppliers have been offering coils at $445/mt CFR and above. “Raw material prices are high. There are negotiations [for HRC in Asia], so new conclusions will be soon,” a trader said.
Chinese exporters, mainly traders, have been offering also at much higher prices - at $450/mt CFR to Vietnam.
It is expected that better sentiments in the Asian HRC market will lead to a further price increase by Formosa Ha Tinh for August deliveries. Market sources forecast offers for SAE1006 will increase to $450-460/mt CFR for August. Formosa Ha Tinh has announced offers at $435-440/mt CFR for SAE1006 grade skin-passed and not skin-passed for July, while discounts at $10-15/mt were available in late May.