HRC prices in Vietnam down further as cheap position cargoes available

Wednesday, 27 January 2021 16:55:27 (GMT+3)   |   Istanbul
       

Prices for imported HRC in the Vietnamese market have fallen again this week, mainly due to low-priced position cargoes available from China. As a result, most buyers have continued to lower their bids.

A few deals for SAE1006 HR coils and strip from Chinese traders have been done at $650-660/mt CFR lately to Vietnam, down from contracts at $670-675/mt CFR for this grade of HRC reported last week. “Bids have started to come at $640/mt CFR and it is not surprising,” a trading source said, explaining the weak market mood. There have been offers for position cargoes at $650-660/mt CFR this week, though last week most sources were giving only $670/mt CFR. Some rare mills from China have been able to negotiate at $670-690/mt CFR, but most producers have been reluctant to give large discounts and have been assessing their price level at still above $700/mt CFR.

Some sources report that the downtrend, driven by aggressive position cargoes offered by Chinese sellers, may stop soon as information about strict production cuts (due to maintenance and environment reasons) have emerged in the market recently.

Other exporters apart from China have also provided some discounts, but their prices have remained far above those Chinese suppliers can provide. Japanese SAE1006 thin coils have been offered through a trader at $780/mt CFR, down at least $20/mt compared to the previous indication. The prices for ex-S. Korea HRC is $770/mt CFR. Some sources said that, as the market has weakened, it is possible to negotiate purchases at $750/mt CFR or so (for re-rolling Japanese/Korean/Taiwanese origin), but overall demand has been weak and buyers have been waiting for the new local price announcement by Formosa Ha Tinh, which is expected next week.

The SteelOrbis reference price for imported SAE1006 HRC in Vietnam has come to $655-660/mt CFR, down by $15-20/mt compared to last week. 


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