Following the better sentiments which appeared in Vietnam at the end of last week given the slight rebound in import HRC prices amid the recovery of Chinese futures prices, this week has brought a negative mood once again as Chinese suppliers have failed to increase their offers.
More specifically, by Wednesday, March 27, new offers for ex-China Q235/SS400 HRC have settled at $520/mt CFR, versus $530-535/mt CFR at the end last week. Moreover, according to sources, following several deals for around 3,000-5,000 mt signed at $523-525/mt CFR at the beginning of this week, by Wednesday the material has changed hands at $518-520/mt CFR for May shipment. Besides, offers for Q195 HRC have been estimated at $515/mt CFR, down by $10/mt since the end of last week.
At the same time, SAE1006 HRC offers have been rare in Vietnam this week, with indicative offers for ex-China HRC heard at $555/mt CFR, down by $5-10/mt week on week. “Trade is extremely slow for re-rolling HRC grades, with some buyers expecting deal prices for ex-China SAE1006 HRC at below $550/mt CFR,” a Vietnamese trader told SteelOrbis.
Notably, though HRC futures prices in China have indicated a rebounding trend over the past week, this week has started with a new decrease affecting Chinese exporters. In particular, as of March 27, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,717/mt ($523.5/mt), decreasing by RMB 74/mt ($10.4/mt) or 1.95 percent since March 20, while down 1.72 percent compared to the previous trading day, March 26, according to SteelOrbis’ information.
Meanwhile, talk about a deal for around 30,000 mt of ex-India HRC signed at $572/mt CFR Vietnam has been circulating in the market, though this information has not been officially confirmed by the time of publication, with most market insiders emphasizing that the price is too high for most Vietnamese buyers given the cheaper options coming from China.
The SteelOrbis reference price for import SAE1006 HRC has moved to $555/mt CFR, against $560-565/mt CFR at the end of last week, based on ex-China indicative prices, though this level has not been fixed in new deals so far due to slow trade activity and downward expectations among Vietnamese buyers.
