The downtrend in the Vietnamese hot rolled coil (HRC) market has continued this week, supported by lower deal prices for Indian coils. As a result, HRC of other origins has not been in demand. Prices for imported HRC in Vietnam have come to $478-490/mt CFR this week, $10-12/mt below last Friday’s level.
About 50,000 mt of HRC from India was sold to Vietnam at $478/mt CFR for September shipment this week, SteelOrbis was informed. “This was a position cargo, not all Indian mills can easily give you such a price,” an international trader commented. Indian steelmakers lowered their prices but were still offering mostly not lower than $485/mt CFR. New deal prices are far from the transaction prices for Indian material registered last week at $490-495/mt CFR.
As SteelOrbis was informed in the middle of the week, ex-China HRC offer prices in Vietnam had declined by $10/mt week on week to $485-490/mt CFR. But taking into account that in the middle of the week sentiments in the local still market had become slightly better and iron ore prices had stopped falling, Chinese HRC exporters were not cutting offers further and will try to give only small discounts in the near future.
Taking into account the local HRC prices announced by Formosa Ha Tinh today, August 16, which are far higher than had been anticipated, it is unlikely that the import HRC prices in Vietnam will indicate further sharp falls in the near future.
