This week has started with another decrease in HRC prices from Chinese traders to Vietnam, with offers for ex-China SS400 at $555/mt CFR, down by $5-10/mt since the end of last week. According to market insiders, despite such a sharp drop, deals have been very scarce so far, while bids from Vietnamese customers have been voiced at below $555/mt CFR.
Meanwhile, offers for ex-China SAE1006 HRC from Chinese suppliers have been rare this week, with the indicative level standing at $580/mt CFR, versus $580-590/mt CFR at the end of last week. “Buyers expect deal prices to drop to $575/mt CFR. Also, the new price fall in China gives no chance to others and they should follow the trend in order to sell to Vietnam,” a local trader told SteelOrbis.
Indicative offers for ex-Japan and ex-Taiwan SAE1006 HRC are reported at $600-610/mt CFR, though some ex-Japan offers have been voiced at $590/mt CFR.
The decrease is explained by the significant drop in ex-China HRC futures prices, which by Wednesday, August 9, have lost RMB 124/mt ($17/mt) since August 1, but have gained RMB 16/mt ($2.2/mt) from the previous day, reaching RMB 3,964/mt ($550/mt).
The SteelOrbis reference price for imported SAE1006 HRC in Vietnam, based mainly on the most competitive ex-China offers, has come to $580/mt CFR on August 9, compared to $580-585/mt CFR last week.
