Although sentiments have remained largely negative in Vietnam’s HRC import market given no visible signs of a demand recovery in the country as well as slow business activity for flats products in the key trade destinations overseas, some rebound has been seen in import prices from Chinese suppliers since the end of last week supported by the futures price recovery. However, for now the uptrend in Vietnam is shaky and market sources believe that only with positive changes in sales of finishes steel and further growth in futures HRC prices in China can confidence in the HRC market increase. Meanwhile, other foreign suppliers have continued to stay out of the Vietnamese market.
More specifically, offers for ex-China Q235/SS400 HRC have increased to $470-475/mt CFR for October shipment, compared to $460/mt CFR at the end of last week and up by $15-20/mt since the beginning of last week. According to sources, several deals for small tonnages have been signed at $470-473/mt CFR at the beginning of this week, however, in general the trade has remained limited. “People think that price has passed over the bottom level, but not all agree on further significant price growth as Chinese futures prices have dropped again slightly on Wednesday, August 28,” a Vietnamese mill’s representative told SteelOrbis, adding that “Maybe, we can see some positive news next week when markets in both Asia and Europe sides coming back.”
Meanwhile, indicative offers for ex-China SAE1006 HRC have settled at $485-490/mt CFR for October shipment, against $480/mt CFR at the beginning of last week and $485-500/mt CFR at the end of last week. Other foreign suppliers have been refraining from offers in Vietnam, with only occasional offers for ex-Japan HRC heard at around $520/mt CFR, which considered as too high to be accepted. Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $485-490/mt CFR, up by $5-10/mt week on week, but down by $10/mt on the higher end of range since Friday, August 23.
As of August 28, HRC futures at Shanghai Futures Exchange are standing at RMB 3,321/mt ($466/mt), increasing by RMB 9/mt ($1.3/mt) since August 21, while down 0.18 percent compared to the previous trading day, August 27.