Following a slight recovery in import HRC prices in Vietnam at the beginning of this week amid the recovery of HRC futures prices in China, this week most offers from Chinese HRC suppliers have decreased.
Specifically, offers for ex-China Q235 HRC in Vietnam have been estimated at $497-500/mt CFR, down by $3-5/mt week on week, with most bids reported at $490-495/mt CFR levels, though, according to sources, at the end of last week a number of deals for ex-China coils were signed at $485-490/mt CFR.
Meanwhile, indicative offers for ex-China SAE1006 HRC have been estimated at $510-515/mt CFR Vietnam, compared to $515-520/mt CFR at the beginning of last week. However, according to sources, most bids from Vietnamese customers have been voiced at as low as $505-510/mt CFR level. Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $510/mt CFR, versus $510-515/mt CFR last week.
The decline in ex-China HRC offers is explained by the fall in China’s HRC futures market. Specifcially, as of November 27, HRC futures at the Shanghai Futures Exchange have settled at RMB 3,473/mt ($483/mt), decreasing by RMB 16/mt ($2.2/mt) or 0.46 percent since November 20, while down 0.06 percent compared to the previous trading day, November 26.
At the same time, the interest in materials from other foreign suppliers has remained minimal in Vietnam, though, according to sources, talk about a deal for 20,000 mt of ex-Japan SAE 1006 HRC signed at $520/mt CFR last week has been circulating in the market.
