Sentiments in the Asian import HRC market have improved as major buyers China and Vietnam have accepted higher prices in recent deals.
A fresh deal for Indian HRC has been signed in China at $400/mt CFR this week, SteelOrbis has learned, which is $10/mt above the previous deals for the same origin last week. “The market level is around $400/mt CFR here. But we can’t accept above it now,” a Chinese buyer said. At the same time, offers from some suppliers have already exceeded this level. Russian suppliers are also targeting $400/mt CFR China after a deal for 50,000 mt at $390/mt CFR late last week.
In Vietnam, a deal for 10,000 mt of Indian coils has been heard at $403/mt CFR and one more transaction has been at $405/mt CFR this week, which is $7-9/mt above a contract at $396/mt CFR for 20,000 mt earlier this week. Today, Wednesday, offers for at least two major Indian mills have been at $405-410/mt CFR for July shipment. “Current HRC prices are above $400/mt CFR already this week. Buyers are considering purchasing at $405/mt CFR,” a Vietnamese trader said.
One of Asian traders has been offering 20,000-30,000 mt of Russian HRC at $395/mt CFR Vietnam for August shipment. Coils produced by another Russin mill have been available at $395-400/mt CFR.
Offers from Taiwan have increased to $410/mt CFR Vietnam, while those from South Korea and Japan have reached $415-420/mt CFR. Traders have priced Chinese coils at $415-430/mt CFR, while mills have been targeting not lower than $420/mt FOB.
Local HRC producer in Vietnam Formosa Ha Tinh will cut its production in June-July and will attempt to increase prices for July delivery by at least $10-15/mt, sources have said. The offers have been heard at $410-415/mt CFR in early May.
