Offers prices from major suppliers in the Vietnamese HRC market have declined early this week. Customers have been mostly waiting for further decreases before signing contracts. Still tough competition and limited demand will push prices down to the level seen before the recent rebound, sources believe.
Offers from at least three major Indian mills have been at $390/mt CFR for June shipment, while small deals were done at closer to $395/mt CFR Vietnam last week. “We are trying to sell at this level, but demand is weak now,” a supplier said. Some customers feel that they will achieve $380-385/mt CFR in import prices soon, so they are not in a hurry to buy. Also, importers from Vietnam are waiting for China to come back to the market tomorrow after the holidays.
The latest deal for 30,000 mt of ex-Japan HRC has been heard at $400-405/mt CFR Vietnam, but there has been no confirmation regarding when it has been done. The previous ex-Japan booking was reported at around $405/mt CFR early last week.
Market sources are also waiting for low-price offers from South Korea and Russia in the near future. “POSCO will offer at $365/mt FOB [$385/mt CFR] to Vietnam soon,” a source said. The expected level for Russian big coils is $380/mt CFR Vietnam.