The situation in the Vietnamese HRC market has continued to be bearish this week with Chinese suppliers, especially traders, continuing to drop their offers trying to sell short. At the same time, sentiments have remained largely negative given no visible signs of a demand recovery in the country, while even though other foreign suppliers have decided to go lower the pace of their decrease has been much slower.
Accordingly, by the end this week offers for ex-China SS400 HRC from traders have decreased to $605-615/mt CFR, down by $25-30/mt week on week and compared to $620/mt CFR at the beginning of the week. According to market insiders, several deals were reported at $615-618/mt CFR at the beginning of this week, while by the end of the week the material has changed hands at $605/mt CFR and customers’ bids have been heard at $597-600/mt CFR level.
Meanwhile, offers for ex-China SAE1006 HRC have been rare in Vietnam, with the indicative level standing at $660/mt CFR, versus $660-670/mt CFR at the beginning of the week and down by $20-30/mt from last week. “It is hard to say what the current workable level is for SAE1006 HRC as rumours have been invading the market while no deals have been reported so far and some customers are bidding at $650/mt CFR,” a market insider told SteelOrbis.
At the same time, suppliers from Japan and Taiwan, who were offering at around $730/mt CFR last week, have been staying out of the Vietnamese market, focusing on boosting sales to other markets such as Europe. The indicative offer prices for ex-Japan and ex-Taiwan HRC have been reported at $700/mt CFR Vietnam. However, most sources believe that the actual deal prices should be at $680/mt CFR and below.
Indicative offers from India have been standing at around $700/mt CFR, down by $30/mt week, though no deals have been reported so far as the price level is too high.
The SteelOrbis’ reference price for import SAE1006 HRC has moved to $660/mt CFR, down by $15-20/mt since the beginning of this week given the continuous drop in Chinese prices.
