The number of competitive hot rolled coil (HRC) offers from non-Chinese suppliers has increased this week. Mills from Japan, South Korea and some producers from India have been trying to attract Vietnamese customers, seeing lower order books in February and facing lower demand in their domestic markets. Though the overall tradable level in Vietnam has not changed much and has been around $470/mt CFR for SAE1006 HRC, bid prices from customers have fallen further.
A deal for up to 30,000 mt of ex-Japan SAE1006 HRC has been rumored at $470/mt CFR Vietnam, as SteelOrbis reported earlier. Offers for South Korean coils have been heard at $475-480/mt CFR. Though a majority of Indian mills have been insisting on $490/mt CFR, one of the leading exporters has submitted offers at $470-480/mt CFR Vietnam. Last week, all these producers were asking for $490-495/mt CFR in Vietnam, but have been forced to cut prices to accelerate sales. However, demand in Vietnam has been limited as customers have been taking their time, waiting for additional discounts. Most bids have been heard at $465/mt CFR and below.
A few deals for ex-China Q195 HRC have been done at $460-465/mt CFR, almost in line with the previous deals for the same grade. Ex-China offers for SAE1006 HRC have been heard at $480-485/mt CFR (corresponds to $470/mt FOB), similar to last week.