Demand in the import HRC market in Vietnam has remained weak over the past week amid the spread of Covid-19 and the lockdown in Ho Chi Minh. At the same time, the price trend has started to reverse as Chinese suppliers have been increasing prices and cheap position cargo offers have been gradually disappearing.
The latest offers for SAE1006 HRC from Chinese traders have been at $950/mt CFR and higher up to $960-980/mt CFR, while just a week ago most negotiations for position cargoes were at $930-950/mt CFR. No sizable volumes have been sold in the market following a small deal at $940-950/mt CFR done late last week for re-rolling grade material.
Moreover, mills from China have increased prices to $1,020-1,080/mt CFR to Vietnam. “China’s price is increasing rapidly these days. At present, an ex-Benxi offer for SAE1006 is at $1,080/mt CFR for new production,” a trader said, adding that demand is not showing any sign of improvement at the moment.
Indian mills have resumed offers at $1,050-1,070/mt CFR to Vietnam this week.
Market sources also said that HRC buyers in Vietnam have been cautious, waiting for new local prices to be announced next week. Formosa Ha Tinh is expected to offer the same level as last week “or $10/mt higher than the previous $1,030-1,035/mt CFR,” according to a market source.
The SteelOrbis reference price for import SAE1006 HRC price in Vietnam is at $950-980/mt CFR this week, with the midpoint at $965/mt CFR, up by $15/mt from last week.
