Import HRC prices have continued to increase rapidly in Vietnam, following surging offers from India and renewed negotiations with Chinese sellers at a higher level as the tax rebate cut is still unclear. Prices have reached $900/mt CFR in the latest deals.
One of the main Indian mills has signed a contract for 30,000 mt of SAE1006 HRC to Vietnam at $900/mt CFR, sources confirmed to SteelOrbis. Moreover, at least two deals for 10,000 mt minimum each have been heard from China at a similar price. Prices in these deals have added $20/mt compared to the previous transition for ex-India coils reported in the market earlier.
In addition, reports of an ex-China sale at $940/mt CFR Vietnam have spread in the market today. This has not been confirmed by the time of publication and a number of sources said that it is too early for prices to be at this level. “It is possible if the seller takes all the risks,” one trader said.
Lately, most offers for ex-China SAE1006 HRC to Vietnam have been coming “at different pricing and rebate terms,” a trading source said. Offers for SAE1006 HRC from China, when producers take 100 percent of risks from the export tax rebate cut, have been heard mainly at $920-940/mt CFR, with just a slight decrease possible. Also, the leading Chinese mill has announced its offer for a full 2 mm HRC cargo at $970/mt CFR, with all the risks also accepted by the seller. Prices could be lower in negotiations for a 50:50 share of risks with the buyer. As SteelOrbis reported earlier, it is still unclear what the tax rebate cut will be. It is expected from April 10 and could be from the current 13 percent to 9 percent, or to 4 percent or to zero. According to the latest talks in the market, the full removal of the rebate is very possible.
Indian mills have also been bullish. They have announced their new offers at $920-925/mt CFR and up to $950/mt CFR to Vietnam.
The mill from Taiwan has been asking for $950/mt CFR, according to sources, while official offers from Japan have even been at $1,000/mt CFR.
The SteelOrbis reference price for import SAE1006 HRC to Vietnam has been at $900-920/mt CFR, up by $30/mt on average from the level earlier this week and as much as $65-70/mt above the last week’s level.
