Prices for import HRC have increased again in the Vietnamese market as supply has been limited and is not going to improve in the short term, sources have told SteelOrbis.
A deal for about 20,000 mt of ex-Taiwan SAE1006 HRC has been done at $970/mt CFR Vietnam this week. In addition, a first-tier Chinese mill has sold some tonnage of re-rolling grade HRC at $980/mt CFR, but at least $10/mt extras has been included in the price, according to sources.
A few re-rollers in Vietnam are still bidding at $950-955/mt CFR, at the same level as in contracts late last week for ex-India coils. But this price is not available in the market any more. “Few buyers can accept our price [$970-980/mt CFR],” one of the exporters to Vietnam said. But most suppliers have remained bullish, seeing the limited volumes available in the market. “Now it seems that all mills offer over $1,000/mt CFR,” a source from Vietnam said.
This week, the number of firm offers from India has declined and they have been mainly at $970-980/mt CFR, heard on Monday and Tuesday. Due to the serious situation with the spread of Covid-19, major Indian steel producers, like JSW Steel Limited and Jindal Steel and Power Limited (JSPL), have decided to cut back steel production at their mills to ensure maximum production of oxygen for medical purposes. As a result, it is hard to predict the production volumes and allocation of HRC for the export market for June shipment.
Formosa Ha Tinh is going to announce its new prices late next week and market sources said the company is going to increase local prices in Vietnam to $1,000/mt CFR.
The SteelOrbis reference price for import SAE1006 HRC has been settled at $950-970/mt CFR, with the lower end stable, while the higher end of the range has increased by $15/mt since late last week.