This week has started with sharp decreases in HRC prices from Chinese traders to Vietnam, with offers for ex-China SS400 HRC at $555-565/mt CFR, down by $15-25/mt week on week. According to market insiders, despite such a sharp drop, deals have been very scarce so far, while most bids from Vietnamese customers have been voiced at below $550/mt CFR.
Meanwhile, offers for ex-China SAE1006 from Chinese suppliers have been rare this week, with the indicative level standing at $605-610/mt CFR, versus $640-650/mt CFR last week. “There are still no firm offers from other suppliers, but the new price fall in China gives no chance to others and they should follow the trend in order to sell to Vietnam,” a market insider said. Indicative offers for ex-Japan and ex-Taiwan SAE1006 HRC are reported to have settled at $660/mt CFR, down by $10-12/mt week on week, though this price level is considered to be “unrealistic”.
The decrease is explained by the significant drop in ex-China HRC futures prices, which by Wednesday, April 26, have lost around RMB 112/mt ($16/mt) since Friday, April 21, falling to RMB 3,771/mt ($544.6/mt).
The SteelOrbis reference price for imported SAE1006 HRC in Vietnam, based mainly on the most competitive ex-China offers, has come to $605-610/mt CFR on April 26, compared to $640-650/mt CFR last week.
