The uptrend in the Vietnamese HRC market has gathered momentum with another price increase of more than $10/mt in fresh deals. Tight supply has been pushing prices up even though some buyers consider the current price level already to be very high.
A fresh contract from a major Chinese mill for 20,000-30,000 mt of SAE1006 HRC has been reported at $627/mt CFR Vietnam today, Wednesday. Another Chinese supplier has managed to close a contract for the same grade at $620/mt CFR. Before this, a deal for 20,000 mt of ex-China SAE1006 HRC was signed at $615/mt CFR. The previous deal price level was $600-610/mt CFR, reflecting a rapid increase in the market over the past few days. “Buyers are targeting to buy at $620-625/mt CFR from China, and so offers are rising more and more,” a trading source said.
There have been reports that Japanese and South Korean suppliers traded HRC at $620/mt CFR last week. “India also sold one cargo [at $615/mt CFR], but all these prices have already passed,” a Vietnamese source said. The latest booking from South Korea was at a higher level - at $530/mt CFR. New offers from Japan, S. Korea and Taiwan have been reported at $650/mt CFR and above depending on the supplier.
The uptrend in the Chinese HRC market has continued, contributing to the rise in Vietnam. On Wednesday, the average local HRC price in China has increased by RMB 50/mt ($7.6/mt) compared to the previous day to RMB 4,215/mt ($640/mt) ex-warehouse, reaching its highest level in more than two years, according to SteelOrbis.
Chinese exporters have been selling to Vietnam HRC for February-March shipment lately. New domestic prices for coils in Vietnam are expected to be announced soon.
The SteelOrbis reference price for imported HRC in Vietnam has been increased to $615-627/mt CFR, based on the latest deals from China, which is $5-12/mt above the previous assessment made earlier this week, and $15-27/mt up from last week’s level.
