Worsening sentiments in Vietnam’s import HRC market have resulted in lower-priced deals for ex-China coils. However, generally, buyers are still cautious and have signed contracts only for small volumes.
A contract for 10,000 mt of ex-China Q195 HRC has been heard at $500-502/mt CFR, down from the previous contract at $506/mt CFR and indications heard early this week at $508/mt CFR. Even though non-VAT trading from China is close to zero now, some traders have been offering in short positions, expecting Chinese prices from mills to go down further.
Also, 1,000 mt of Chinese SPHC pickled and oiled coils has been sold at $565/mt CFR, down by $8/mt from the previous contract for the same grade. A similar level is achievable for 1 mm CRFH from China.
At the same time, the offer price level for ex-China SS400 HRC stands at $515/mt CFR, versus $520/mt CFR last week.
For the other grades, Chinese sellers have been focusing on other destinations. SAE1006 HRC has been on offer at $540-545/mt CFR in Pakistan. At the same time, there have been reports about a deal for 2,000-3,000 mt of 2 mm HR sheet from China to the MENA region at $510/mt FOB. Most offers and deals from China are for end-of-August shipment at the moment.
