Lower ex-Russia HRC deals reflect weaknesses in Vietnamese market, but bottom almost reached

Wednesday, 18 September 2019 12:26:21 (GMT+3)   |   Istanbul

Negative sentiments and lower bids have pushed import HRC prices in Vietnam down again this week after a small pause. A deal for about 40,000 mt of Russian small coils from MMK has been concluded at $442/mt CFR Vietnam. Prices for big coils have been at $450/mt CFR with some contracts having been concluded late last week, SteelOrbis has learned.

Big tonnages of Indian HRC (up to 100,000 mt) were traded at $455/mt CFR Vietnam for November shipment last week. “Not such a big surprise that prices fell to $450/mt CFR. But Vietnam is buying, while demand elsewhere is lower,” a large Asian trader said.

SteelOrbis reference prices for import HRC SAE1006 have lost $5/mt since last week, coming to $450-455/mt CFR.

Chinese HRC is still less competitive in the Vietnamese market as offers for SS400 HRC with thickness of 3 mm and above have been heard at $465-475/mt CFR.

At the same time, there are expectations in the market that the downtrend has almost sputtered out. “Seems that the prices have reached the bottom,” a trader said, adding that suppliers have not such an urgent need to sell as earlier. Russian mills are offering December shipment HRC at the moment or are focusing on sales of November shipment coils to other destinations. Indian mills have been able to close a big part of their November shipment order books.

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