Import hot rolled coil (HRC) prices have increased further in Vietnam early this week, but trading activity has slowed down as buyers have covered their needs for December and have decided to wait before concluding new bookings. Offers for ex-India SAE1008 HRC have reached $450-455/mt CFR for late December-January shipment, $5/mt above last week. But the latest deal for ex-India coils were closed at $443/mt CFR Vietnam late last week, sources said.
Indian mills have mostly sold out for December shipment and have witnessed some improvement in the domestic market and so they expect higher prices will be reached in the new sales round.
Offer prices for ex-South Korea and ex-Japan have been heard at $460-470/mt CFR, while the previous deal for South Korean coils was signed at $455/mt CFR.
Chinese traders have also been insisting on higher prices, offering SS400 HRC at $460-465/mt CFR Vietnam, with this level already being achieved in sales of ex-China HRC to Pakistan, sources said, but freight to Vietnam is lower ($15/mt for small tonnages), which means that Chinese suppliers are also following the uptrend in the export market.
Moreover, higher prices from local Vietnamese HRC producer Formosa Ha Tinh have added to the situation.
The mill’s official prices for SAE1006 grade skin-passed HRC have been set at $470/mt CFR for January delivery, up $10/mt from last month. Its offers for SS400 grade HRC increased to $460/mt CFR, as SteelOrbis reported last Friday. Regular customers can still receive some compensation from the producer, but it has become much lower compared to previous months, sources said.