After sharp rises in HRC prices in the import markets of Vietnam and China since last week and a number of deals signed at higher levels, sentiments have worsened today, Thursday, June 4, after futures prices fell in China.
Vietnamese customers accept price increase
According to market sources, most deals for HRC of different origins to Vietnam have been signed at $425-430/mt CFR this week for a total tonnage close to 150,000 mt, but some small lots have already been traded at above $430/mt CFR Vietnam. During last week, the tradable level was at $415-420/mt CFR.
A cargo of 40,000 mt of Russian HRC from the Baltic region was traded at $425/mt CFR to Vietnam in the middle of this week. Also, about 80,000 mt in total of Indian HRC was sold at $427/mt CFR, as SteelOrbis reported earlier. Another lot, of Indian HRC SAE1006, is rumoured to have been traded in the market at $430/mt CFR, but this information has not been confirmed by the time of publication. On Thursday, there have been reports that 10,000 mt of Indian HRC for August shipment have changed hands at $430-435/mt CFR, SteelOrbis has learned.
Some market sources believe that import HRC prices in Vietnam have space to rise up to $440/mt CFR Vietnam for August shipment. But some other sources believe that prices have already reached a peak and, without support from China, it will be hard for suppliers to increase prices further.
Demand for HRC in China starts to ease
Early this week, a cargo of Indian coils was traded to China at $428/mt CFR, as SteelOrbis reported earlier. Moreover, two lots from Turkey of 90,000 mt of HRC in total have been sold at the price equivalent to $425-430/mt CFR China, according to Turkey-based sources. At the same time, Asia-based traders have been saying that contracts have been closed at $5/mt CFR lower.
Offers from India are at $435/mt CFR China late this week, but Chinese traders have reported that there have been no deals above $430/mt CFR recently. “It is impossible as local prices are down,” a source said.
Average local HRC prices in China have declined by RMB 10/mt ($7/mt) today to RMB 3,655/mt ($515/mt) ex-warehouse. At the same time, HRC futures prices at Shanghai Futures Exchange have declined by RMB 59/mt ($8/mt) today to RMB 3,487/mt ($491/mt).
