Prices for import HRC in Vietnam have plunged this week as a number of Chinese sellers have been offered cargoes at much lower levels. This decrease is mainly connected to the decline in domestic HRC prices in China, affected by the poor downstream situation caused by the Covid-19 lockdown in Shanghai.
On Monday, April 25, the prices available for ex-China position SAE1006 HRC have been at low as $872-875/mt CFR, compared to the latest deal price at $905/mt CFR last week. But buyers have been cautious in signing deals in such a rapidly falling market. Earlier last week, a contract for a position cargo from China was done at $905/mt CFR, as SteelOrbis’ reported earlier and, subsequently, one contract for 60,000 mt has been rumored at around $900-905/mt CFR.
Furthermore, cheap position cargoes from China for lower quality coils and strips have been reported to Vietnam. Offers for ex-China SS400 HRC have been voiced at $820/mt CFR for late June shipment, compared to $855-860/mt CFR last week, while customers’ bids have been rare at $810-815/mt CFR. “I heard there was a booking for ex-China narrow strip 2.5 mm at $815/mt CFR today,” a Vietnam-based trader told SteelOrbis.
As a result, the SteelOrbis’ reference price for import SAE1006 HRC in Vietnam, based mainly on the most competitive offers, has come to $872-890/mt CFR on April 25, down by $20-23/mt from $895-910/mt CFR a week ago.
Meanwhile, on April 25, domestic prices for ex-China SS400 HRC have fallen by RMB 180-190/mt ($27-29/mt) compared to April 22 to RMB 5,000-5,100/mt ($760-776/mt) ex-warehouse, according to SteelOrbis’ data. At the same time, Chinese HRC futures prices have also lost RMB 180/mt ($27/mt) since Friday, April 22. “The logistics constraints in some areas in China with the relatively serious epidemic still have a great impact on steel demand, especially on the automotive sector in Shanghai, and so Chinese HRC suppliers are forced to decrease their prices,” a Chinese trader stated.