Continued slow demand for HRC in Vietnam for another week has put pressure on prices in the import market in Vietnam and some traders have cut their prices for position cargoes.
In particular, a number of traders have been asking for $930/mt CFR or just slightly higher for ex-China SAE1006, while in negotiations it has been possible to get $920/mt CFR Vietnam, sources have said. Last week, position cargoes were offered at $940/mt CFR to Vietnam.
There is a rumour about a sale of re-rolling grade coils at around $920/mt CFR this week, but the information could not be confirmed by the time of publication. Some sources said that the risks of the possible export tax should be at least shared between buyer and seller or took by the supplier in this case. “The uncertainty in export duty is still very big as no one knows when it will be introduced – from July or August or later,” a trader said. That is why overall activity in the import HRC market in Vietnam has been weak and rare bids have fallen down to $900/mt CFR or so.
Big Chinese mills have been offering at $980-990/mt CFR to Vietnam early this week.
Offers for alternative origins of HRC to Vietnam have been still much higher. Indian traders and at least one mill have been asking for $1,000/mt CFR, while some other sellers from India have not been active in offering, focusing on other markets.
Most Vietnamese buyers have been still more interested in local purchases as it is safe and prices are attractive.
The SteelOrbis reference price for import HRC in Vietnam, showing the tradable level, has been reduced to $920-940/mt CFR, down by $10-20/mt from late last week.
