Local Vietnamese producer Hoa Phat has announced its new prices for the local market, which are $6-8/mt below the levels seen in September. Though the outlook in Vietnam has been better since the lockdown measures started to ease in October, so far there are no signs of a rebounding tendency.
Hoa Phat’s prices for SAE HRC for December shipments have been reported at $889-892/mt CFR, versus $895-900/mt CFR in September. The lower-end price corresponds to the level for Haiphong, $890/mt CFR is the price for central Vietnam, while $892/mt CFR is for Ho Chi Minh City. The company’s SS400 prices are $4-5/mt lower.
“I do not see positive developments [in terms of prices] by the end of October, as demand is not as good as it should be after the restrictions were lifted,” a local source from Vietnam said.
Though the bearish sentiments have persisted in Vietnam, some better expectations in terms of imported HRC buying volumes exist. It has been confirmed that in total 160,000 mt of ex-Russia HRC have been traded to Vietnam at $843-850/mt CFR this week. The price level is slightly below $850/mt CFR seen in the previous round of purchases in September for the same origin. “The price is low, but volumes could be absorbed better than previously,” a source said.
Indian HRC sellers have been inactive in Vietnam. One of the Indian mills has managed to sell 10,000 mt of HRC at $900-905/mt CFR to the Gulf region and “local demand also exists, so no need to offer cheaply to Vietnam,” an Indian seller said.
The SteelOrbis reference price is standing at $865/mt CFR this week, down by $5/mt from last week.
