The uptrend has continued in the Vietnamese import market recently and a few deals have been reported at higher levels. Indian suppliers have been offering less volumes to the export market and the overall supply-demand balance has been tight, supporting a further increase. Nevertheless, buyers have been cautious in purchases, with many sources believing that prices will stabilize at the current level for some time.
A contract for around 15,000 mt of Indian HRC was reported at $515/mt CFR Vietnam last week. After that, the same supplier sold some tonnage at $515-520/mt CFR, and, though this has not being finally conformed by the time of publication, a few traders said that, if any big buyer wants to make a deal the price level should be at close to $520/mt CFR, SteelOrbis learned.
In addition, around 30,000 mt of Japanese HRC were sold to the traditional customers in Vietnam at $515/mt CFR last week. “This is a very good price for the buyers, as the offers that we see are above $500/mt FOB,” a Japanese trader said. Some sources believe that such an attractive price level is connected with the long-standing relations between Japanese sellers and some of the Vietnamese customers.
Bids from Vietnam have been coming for Russian HRC at $505/mt CFR as customers are seeing some limited supply volume from India and locally, but offers are starting from $520/mt CFR, traders have said.
Suppliers from Taiwan have increased offers to $540/mt CFR Vietnam and the indicative level for Japanese HRC is at $520-525/mt CFR, though no fresh firm offers are heard in the market.
SteelOrbis reference prices have increased from $505-510/mt CFR last week to $515-520/mt CFR.
