Chinese HRC suppliers have been cutting prices to Vietnamese importers rapidly since late last week, resulting in the cautious attitude of most customers. Nevertheless, some lower-priced deals have already been done.
Offers for SAE1006 HRC from Chinese traders or small mills have come down to $950/mt CFR Vietnam and negotiations have been held at $930-950/mt CFR. One deal has been rumored at as low as $920/mt CFR, but some sources said that it was for pipe-making, not re-rolling HRC. Details of the deal have remained unclear by the time of publication.
At the same time, the majority of offers for ex-China SAE1006 HRC from big mills have not been below $970/mt CFR, sources have said.
“The market is not sustainable these days due to China's price fluctuation, and buyers are mostly waiting for the next signal before deciding to buy or not,” a local trader said.
The lowest price level for ex-India SAE1006 HRC has been reported at $1,020/mt CFR, but most major mills have still been asking for $1,070-1,080/mt CFR.
Official offers from Japan have been at $1,150/mt CFR, being mostly an indication in the market, while no fresh offers for HRC from S. Korea have been reported recently.
The SteelOrbis reference price for import SAE1006 HRC in Vietnam has been lowered to $930-970/mt CFR with the midpoint at $950/mt CFR, plunging by $40/mt on average from last week.