Following the price declines seen in Vietnam’s HRC import market in the previous week, at the beginning of the past week some recovery in prices was seen but prices have dropped again by Wednesday, July 17, amid fluctuations in offers from Chinese suppliers. At the same time, trade has been rather limited due to slow demand.
Specifically, offers for ex-China SS400/Q235 HRC in Vietnam have been voiced at $520/mt CFR for August shipment, versus $516-518/mt CFR last week. “Most bids are at $515/mt CFR today. Even though some recovery in HRC futures prices has been seen this week, Vietnamese buyers are still not ready to pay more,” a Vietnamese trader told SteelOrbis. Offers for Q195 HRC are at $515/mt CFR, more or less the same as last week, while offers for Q355 HRC have been heard at $537/mt CFR. Besides, offers for SAE1006 HRC have been voiced at $530-535/mt CFR from traders, the same as last week, while offers from first-tier mills have settled at $540-545/mt CFR.
Thus, the SteelOrbis reference price for SAE1006 HRC has been heard at $530-540/mt CFR, the same as last week.
At the same time, according to sources, cheap non-VAT offers for HRC, have disappeared from the market again as inspections of exports have resumed. “The market is flat in China. Prices are up about $5/mt up negotiable as demand remains weak globally,” a Chinese trader said.
As of July 17, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,668/mt ($514/mt), decreasing by RMB 13/mt ($1.8/mt) or 0.35 percent since July 10, while down 1.64 percent compared to the previous trading day, July 16.