Russia books large HRC volumes to Vietnam, the only big outlet for now

Tuesday, 07 April 2020 16:46:47 (GMT+3)   |   Istanbul
       

Import hot rolled coil (HRC) prices in Vietnam have slumped further following reports of large volumes sold from Russia. Vietnam has been the only market which has been able to buy large tonnages, a fact which, together with falling demand from other sales destinations, has forced Russian suppliers to reduce prices.

A number of contracts for a total tonnage of up to 80,000 mt of big coils from Russia’s Black Sea region has been signed at $370/mt CFR Vietnam, according to the sources. “It was the lowest price in the market. There were no offers from India below $390/mt CFR [Vietnam],” a local source said. As a result, the export price from Russia’s Black Sea region given specifically to the Asian market has been settled at $340/mt FOB, sources have said.

Another Russian supplier has managed to sell about 40,000 mt in total at about $375/mt CFR or slightly above to Vietnam last week, which corresponds to about $345-350/mt FOB Baltic Sea.

Previous transactions for Russian HRC were at $380-395/mt CFR Vietnam, as reported earlier. One of the reasons for the lower prices has been longer lead times compared to other suppliers. For example, Indian mills can offer and sell for end of May-early June delivery in Vietnam, while for Russian coils delivery is expected in July.

There have been rumours in the market of the sale of HRC from the Black Sea to China recently. But it has not been confirmed by the time of publication.

Price indications for ex-India SAE1006 in Vietnam are still at $390/mt CFR, while Chinese HRC has been offered by traders at $410/mt CFR and above. Japanese, South Korean and Taiwanese HRC exporters have been less competitive recently, offering to Vietnam at $430-440/mt CFR.


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