Following a slight recovery in Vietnam’s HRC import market seen last week, prices for import HRC have plunged this week as a number of Chinese sellers have been offering cargoes at much lower levels. However, Vietnamese buyers have not been in a hurry to sign new deals, counting on a further downward correction before resuming buying activity.
Accordingly, the prices available for ex-China position SAE1006 HRC have been as low as $800-820/mt CFR, compared to $850-870/mt CFR last week. But buyers have been cautious in signing new deals in such a rapidly falling market. Besides, cheap position cargoes from China for SS400 coils have been reported to Vietnam at $765-780/mt CFR, down by $35-40/mt over the past week, and some offers have been even voiced at $755/mt CFR. “Most Vietnamese buyers prefer to postpone new deals as sentiments are still bearish and local HRC producer Formosa is expected to come up with new prices by the end of this week-beginning of next week,” a market insider stated.
In the meantime, Indian suppliers, who have been staying out of the Vietnamese market for a few months, are reported to have offered their materials at $850/mt CFR, compared to $900/mt CFR heard last week. “The point is, even if these Indian offers are real, who will buy at $850/mt CFR considering that Vietnamese customers have been bidding at below $800/mt CFR,” an international trader told SteelOrbis.
Meanwhile, according to market insiders, ex-Russia coils have been offered to Vietnam at $700/mt FOB Far Eastern ports this week, though no other details have been disclosed by the time of publication.
The SteelOrbis’ reference price for import SAE1006 HRC in Vietnam, based mainly on the most competitive offers, has come to $800-820/mt CFR on May 11, compared to $850-870/mt CFR last week.
