This week has started with sharp decreases in HRC prices from Chinese traders for Vietnam, with offers for ex-China SS400 HRC on Monday, October 31, at $500/mt CFR, down by $35/mt week on week. According to market insiders, no deals have been reported so far, while some bids from Vietnamese customers have already been voiced at $485/mt CFR.
Meanwhile, offers for ex-China SAE1106 from Chinese traders have been voiced at $530/mt CFR. “We have not heard new offers from Japan, India or South Korea, but the new Chinese offers give no chance to others and they should follow the trend in order to sell to Vietnam,” a market insider said. Offers for ex-Taiwan SAE1006 HRC are reported to have dropped by $20/mt week on week to $540/mt CFR.
The decrease is explained by the significant drop in ex-China HRC futures prices, which by Monday, October 31, have lost around RMB 73/mt ($10/mt) since Friday, October 28, and have dropped by RMB 199/mt ($27.3/mt) week on week, falling to RMB 3,457/mt ($473.5/mt).
The SteelOrbis reference price for imported SAE1006 HRC in Vietnam, based mainly on the most competitive offers, has come to $530-540/mt CFR on October 31, compared to $550-560/mt CFR last week.