Following the continuous fluctuations of import HRC prices mainly caused by ups and downs in futures and local prices in China, Vietnamese customers have kept insisting on discounts, and as a result have secured several batches of ex-China Q195 HRC through non-VAT traders at slower levels this week.
More specifically, while offers for ex-China SS400/Q235 HRC in Vietnam have been still heard at $530-535/mt CFR, the tradable price level has decreased by $5/mt to $530/mt CFR. Meanwhile, a deal for 10,000 mt of ex-China Q195 HRC through non-VAT traders has been signed at $522/mt CFR this week, while another batch for around 10,000 mt as well has been reported at $525/mt CFR. Besides, another deal for 20,000 mt of ex-China Q195 strips has been reported at $515/mt CFR.
At the same time, while most offers for ex-China SAE1006 HRC from mills have been voiced at $550-555/mt CFR, against $555/mt CFR last week, offers from Chinese traders have been heard at as low as $545/mt CFR this week. In the SAE1006 HRC segment, trade activity has been rather slow as compared to Q195 HRC, while the SteelOrbis reference price for import SAE1006 HRC has moved to $545/mt CFR, versus $555/mt CFR last week.
“Chinese futures HRC prices have been showing some signs of recovery this week, but failed to maintain uptrend, and dropped again by Tuesday, affecting buyers’ mood,” a Vietnamese trader said. In particular, as of June 20, HRC futures at Shanghai Futures Exchange are standing at RMB 3,776/mt ($530/mt), decreasing by RMB 12/mt ($5.6/mt) or 0.3 percent since June 13, while down 0.55 percent compared to the previous trading day, June 19, according to SteelOrbis data.
Indicative offers for ex-Japan HRC have been estimated at $570/mt CFR level, the same as last week, though no deals have been reported so far.
