Prices for import HRC in the Vietnamese market have dropped to below $900/mt CFR lately, following a deal for ex-Russia HRC and a number of bookings for ex-China coils made last week.
Last week, a first-tier Chinese mill sold a small volume of SAE1006 re-rolling HRC at $950/mt CFR, while another producer from China traded thin coils of 2 mm thickness at $950-955/mt CFR. After that, 10,000-15,000 mt also of ex-China SAE1006 HRC were booked at $920/mt CFR.
Smaller Chinese mills have been more aggressive, with at least two small-volume contracts heard at $900/mt CFR and just slightly higher.
Moreover, on June 28, information about a sizable tonnage of ex-Russia HRC sold to Vietnam at $855/mt CFR emerged, SteelOrbis learned from market sources in Asia. About 90,000 mt of HRC from Russia were on offer to Vietnam in total. “This surprised the market. But to sell a large quantity the price should have been below $900/mt CFR,” a market source said. Russian steel producers will have to pay 15 percent export duty starting from August 1 with the specific duty component for HR flats, semis, and rebar at no less than $115/mt. The material sold to Vietnam recently is expected to be shipped by the end of July.
Overall demand for import HRC in Vietnam has been staying very weak and buyers have all been lowering their bids below $900/mt CFR. “Demand for HDG [from Vietnam] is now only coming from abroad,” a local source said. Last week, deals at $850-860/mt CFR were heard only for thicker SS400 HRC from China, but this week market participants have started to see this level as a tradable for SAE1006.
The SteelOrbis reference price for import SAE1006 HRC has dropped to $855-920/mt CFR with the midpoint at $887.5/mt CFR, down by $42.5/mt on average since last week.