Prices for imported HRC in Vietnam have remained the same or have increased depending on the supplier since late last week. And though overall sentiment for the near future is positive due to limited supply, competition is going to increase with the new player Hoa Phat Group starting its commercial sales and aiming to substitute some import volumes.
Offers for SAE1006 HRC from China are still heard at $535-540/mt CFR Vietnam from traders and mills. The tradable level has increased from $525-530/mt CFR to $530/mt CFR as 10,000-20,000 mt of SAE1006 from China was sold at this level late last week. “This is what customers can accept, if they need to buy,” a source said.
Also, Russian pipe-making grade coils have been sold by a trader at $520/mt CFR Vietnam.
An Indian mill has been offering to Vietnam at $550/mt CFR, up by around $10/mt from last week. However, traders have been able to provide lower levels, which, however, have remained uncompetitive.
A very small volume of re-rolling grade HRC from Taiwan has been purchased at $555/mt CFR in Vietnam, which has been assessed at “high, but reasonable,” taking into account high offers from Japanese and Korean suppliers, who insist on $560/mt CFR.
Overall demand for imported HRC has been weak in the Vietnamese market recently, but customers have faced supply disruptions due to heavy floods and as a result, they may look for additional volumes soon.
The focus of attention has been on the domestic market, where new player Hoa Phat Group is starting commercial sales. In October, the company sold SS400 HRC at $520/mt CFR, while offers for SAE1006 were heard at $530-535/mt CFR, slightly lower than the prices from Formosa Ha Tinh. Hoa Phat Group produced 120,000 mt of HRC in October and has already sold 140,000 mt of coils, which will be delivered starting from the beginning of November. “Customers are interested in local HRC, especially pipe makers,” a local trader said.
SteelOrbis’ reference price for imported SAE1006 HRC in Vietnam has been increased by $2.5/mt on average to $530/mt CFR.