Prices for import HRC in Vietnam have posted another week of declines, with at least two deals confirmed at lower levels. With some rebound seen in the benchmark Chinese HRC market, some market sources are hoping for price improvements, but the positive signs are very shaky for now.
In particular, a contract for 30,000 mt of Indonesian HRC, not from the leading mill, has been signed at $517/mt CFR. Also, an undisclosed tonnage of Indian HRC could have changed hands at $520/mt CFR. This is down from offers early in the week at $521-523/mt CFR from major traders and from $525/mt CFR available in firm offers last week. Market sources have also seen bids at as low as $510/mt CFR this week, but this level has been assessed as too low for most sellers.
Starting from Wednesday, some offers for Indian 2 mm HRC have increased to $530/mt CFR in Vietnam, and 3 mm material has been available for $525/mt CFR.
But, even despite some higher offers, there has been no change in trend in Vietnam so far. “Chinese prices started to rebound since the last two days, but Chinese sellers are flexible in giving discounts for serious orders, the same as Indian mills... Shipping costs are big constraints now, especially for the Middle East market as vessels are not coming to Jebel Ali and berthing delays are resulting in demurrage at ports,” an Indian source commented.
The SteelOrbis reference price for import SAE1006 HRC in Vietnam has settled at $517-525/mt CFR, down by $3-5/mt over the week.
