Prices for import HRC in the Vietnamese market have increased further, and, although trade activity has been limited this week, as most companies have left the market for the holiday, the uptrend of import prices is expected to persist given the bullish mood of most main exporters.
Before closing for the Chinese New Year holiday (21-27 January), Chinese suppliers have increased their offers for SAE1006 HRC to $660-675/mt CFR Vietnam, up by $10-15/mt week on week, while offers for SS400 HRC have been voiced at around $640-650/mt CFR, versus $630/mt last week.
Meanwhile, offers for ex-India SAE1006 HRC have been voiced in Vietnam at a minimum of $660/mt CFR, with no deals reported so far. Offers for ex-Japan HRC have settled at around $670/mt CFR this week, while no firm offers from South Korea and Taiwan have been reported.
At the same time, local prices for HRC from Formosa Ha Tinh Steel have remained the most attractive in the market, standing at $635-640/mt CFR. However, another local producer Hoa Phat Group has delayed the announcement of new HRC prices for March shipment for the domestic market, and, according to sources, new offers are likely to be released after the Chinese New Year holiday. Furthermore, market insiders have been actively discussing the possibility of the restart of at least two blast furnaces (BFs) of Hoa Phat Group at its Dung Quat and Hai Duong facilities given the revival of steel demand in the country and overseas, though no official confirmation has been provided by the company by the time of publication.
The SteelOrbis reference price for import SAE1006 HRC in Vietnam has been increased by $10-20/mt over the past week to $660-670/mt CFR.