Import prices in the Vietnam’s HRC market have continued to decline this week given the bearishness mounting in China. However, business activity has remained relatively slow lately as most market insiders expect local producer Formosa Ha Tinh to come up with new prices this week. Besides, most expect more discounts will be provided in new deals for ex-China HRC in the short run.
Specifically, on Wednesday, August 14, ex-China SS400 HRC offers in Vietnam have been voiced at $470/mt CFR, down by $5/mt compared to the previous day and down by $20-30/mt since the beginning of last week. Besides, according to sources, following a few deals signed at $477/mt CFR on Monday, August 12, the material has changed hands at $470-472/mt CFR by the middle of this week, though most Vietnamese customers report that deals remain occasional and mainly for limited volumes.
Offers for ex-China Q195 HRC have settled at $465/mt CFR, down by $20/mt over the past week.
In the meantime, by Wednesday, offers for ex-China SA1006 HRC have been voiced at $490/mt CFR level, mainly for October shipment, though, according to sources, the workable price level has been estimated at $485/mt CFR. Thus, the SteelOrbis reference price for imported SAE1006 HRC has moved to $485-490/mt CFR, against $510/mt CFR at the end of last week.
“The Vietnamese market is waiting for Formosa to announce new offers for local customers. This month it is not easy to predict at what level they will decide to sell. Some expect $500/mt CIF, but allocations for the local market will certainly be less, like last month, as they are focusing on exports,” a market insider told SteelOrbis.
As of August 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,246/mt ($455/mt), decreasing by RMB 235/mt ($33/mt) or 6.75 percent since August 7, while down 3.31 percent compared to the previous trading day, August 13.
