Prices for imported HRC have fallen further in fresh deals to Vietnam. Chinese traders have been lowering prices, selling in short position, as the outlook in the local Chinese market is bearish. Chinese mills have also been more flexible in pricing. A bearish outlook prevails for the near future.
SteelOrbis’ reference price for imported HRC in Vietnam has dropped by $10-15/mt since late last week to $515-520/mt CFR and the outlook remains bearish.
At least two deals for SAE1006 HRC from China by traders have been done at $515-520/mt CFR to Vietnam this week, down $5-10/mt from the deal price level last week. The contracts were for November-December shipment. Moreover, there have been reports in the market that ex-China SAE1006 HRC has been sold at $500-505/mt CFR for January shipment and traders have been inviting bids at $495/mt CFR for February shipment material. Such an aggressive pricing strategy by the Chinese traders signals their bearish outlook for the near future. They expect Chinese mills will not have any other option but to cut export prices to offset low domestic demand.
Offers from some Chinese mills for SAE1006 have been at $525-535/mt CFR, according to sources, also lower than last week, but bids already do not exceed $515/mt CFR.
Traders’ short sales of SS400 HRC have been heard at $505/mt CFR to Vietnam this week, though most offers have been at $515/mt CFR and above.
“China’s domestic demand is falling. China’s Golden Week events in early October also affect the price drop,” a local source said.
Other suppliers have also been forced to cut prices. An offer for ex-Russia HRC has been at $515/mt CFR, according to Vietnamese sources. At the same time, bids have been coming at only $505-510/mt CFR.
Indian mills have been not competitive recently with offers at $540/mt CFR minimum heard at the beginning of this week. Most exporters have focused on sales and negotiations to other destinations like Europe and the Middle East and have kept their focus on the local market.
Japanese SAE1006 HRC 2 mm is available at $540-545/mt CFR, down by $5/mt since last week, but no new deals have been reported so far. Ex-Taiwan offers have come down to $535/mt CFR.
