Vietnamese HRC importers have resumed active purchases of import HRC this week after receiving low prices for ex-Russia material. This proves that, though Indian mills have been more bullish and local producers have been maintaining prices stable, the overall trend has not reversed in Vietnam yet.
According to market sources, in total up to 120,000 mt of ex-Russia HRC have been sold to Vietnam this week in four lots. Around 60,000 mt of HRC have been traded at $843/mt CFR, while the rest of the volume has changed hands at prices in the range of $845-850/mt CFR. This means that prices have been slightly lower than in the previous round of sales for the same origin material done at $850/mt CFR in September. “This is a reasonable price for customers here as the market [in terms of demand and finished steel prices] is not good at all,” a Vietnam-based source said.
Nevertheless, there has been some talk in the market that the total volume was even bigger, reaching 150,000 mt, while the producer has already started to increase its prices. The last lot was sold at not below $850/mt CFR, sources have said.
Indian mills have not been following this bearish sentiment, since their local prices have started to improve. They have been targeting $900-910/mt CFR Vietnam or above, while offers below $900/mt CFR have been possible only from traders.
Formosa Ha Tinh has rolled over its re-rolling grade SAE1006 HRC prices in the local market on Monday, at around $920/mt CFR. “Discounts are possible depending on the customer and volume,” a source said.
The SteelOrbis reference price for import SAE1006 HRC has been lowered by $5/mt on average to $865/mt CFR, taking into account ex-Russia coil deals at as low as $840/mt CFR and the lowest possible level from Indian and some other suppliers at $890/mt CFR.