HRC importers in Vietnam have cut their bids, seeing slow consumption and having mainly negative views for the near-future outlook. As a result, the tradable level in the market has declined even despite the rebound in China’s local HRC market.
At the moment, the tradable level for SAE1006 HRC for January shipment has been assessed by a number of market sources at $810/mt CFR, down from a deal for ex-China material at $815/mt CFR for February shipment done last Thursday.
“Now Vietnamese mills are bidding at $800-805/mt CFR, but it seems quite difficult to get it because China's market is rebounding,” a trader said. Some bids from traders have been reported at $780-790/mt CFR for the same grade in Ho Chi Minh City.
The market is still waiting for the new prices from local producers, which are expected later this week. Last month, Formosa Ha Tinh settled re-rolling grade SAE1006 HRC (non-skin passed) prices in the local market at $880/mt CFR, down by $40/mt over the past month. And in December market players expect the same drop - to around $840/mt CFR or so, SteelOrbis has learned. “If Japan can offer this [$840/mt CFR], FHS will also adjust prices,” a local source said.
The SteelOrbis reference price has been lowered from $815-835/mt CFR last week to $810-820/mt CFR and could be adjusted down further once new lower-priced deals are done.
