The more optimistic mood seen in the Vietnamese HRC market in late October has disappeared this week due to a number of low-priced offers coming from Chinese traders, while a new Indonesian supplier has also commenced offering HRC to Vietnam for the first time.
Chinese traders are now more active in offering HRC with their prices being among the most competitive. After a rumour about deals for ex-China SS400 HRC at slightly below $860/mt CFR Vietnam, offers for this grade have dropped to $840/mt CFR and even to as low as $800/mt CFR from some “crazy traders”.
Prices have come down for the most popular SAE1006 HRC. The latest offers for SAE1006 HRC from Chinese traders (mainly going short, offering for February shipment) have been reported in Vietnam at $845-855/mt CFR.
“China’s price declines have weighed on prices for other origins,” a local source in Vietnam said. An offer for ex- Kazakhstan SS400 HRC has been heard at $840/mt CFR.
In addition, having a very negative outlook for the price trend in the first quarter, one Chinese trader has been offering SAE1006 HRC for April shipment at $765/mt CFR Vietnam for open origin. But no deal has been heard as buyers are cautious for purchases beyond January.
An Indian mill has been offering at $910-915/mt CFR, with a decline by $5-10/mt from the previous level, but it is still too high for Vietnamese customers.
Offers for ex-Japan SAE1006 HRC have been reported at $950/mt CFR to Vietnam, in line with the latest level for the same origin to Pakistan. But exporters “received bids below $900/mt CFR,” a source said.
An Indonesian mill, Dexin Steel, has started offering HRC to Vietnam for the very first time. An offer was for 20,000-30,000 mt of Q195L/SPHC 2-3 mm HRC at $810/mt CFR for December shipment. The low price level is due to the “not very stable quality now” and the response from buyers has not been great for now, sources have said. Indonesia supplier Dexin Steel, a well-known billet supplier with Chinese investments, started slab production in June and slab exports in July.
The SteelOrbis reference price for imported SAE1006 HRC in Vietnam has dropped to $845-860/mt CFR with the midpoint at $852.5/mt CFR, down by $47.5/mt from last week. “I think the price will drop further,” a local source said.