Prices for import HRC in the Vietnamese market have increased further, and, although the price levels of local material have been lower, the uptrend of import prices is expected to persist given the limited supply in comparison with demand and the bullish moods of most main exporters.
Chinese suppliers have been offering SS400 HRC at above $800/mt CFR and SAE1006 at $830-840/mt CFR Vietnam. While last week these prices were considered uncompetitive, this week some sources said that a deal for 5,000 mt of SS400 HRC was closed at $790-800/mt CFR for March shipment. “I think it is true. Now, Vietnamese customers cannot buy under the $800/mt CFR level,” one source said, adding that, although exporters were ready to sell promptly in the last couple of weeks, their mindset is changing fast since people think that prices will rise sharply after the Lunar New Year holiday.
Meanwhile, SAE1006 HRC offers from Indian mills have increased by around $35/mt to $800/mt CFR Vietnam since Friday 21. One source said it is still possible to buy Indian material from traders at $770/mt CFR, though most market insiders said that no offers have been heard below $800/mt CFR from India. According to market insiders, Indian mills are eyeing further export and domestic price increases considering the rising cost of power generation, along with higher coking coal and iron ore prices.
Offers for Japanese HRC have been heard in Vietnam at $800-805/mt CFR this week, though no deals have been reported so far. “A good price does not mean there will be a deal because Japan usually just gives an offer but does not announce the quantity. Now, at this price there should be some small orders around 5,000 mt,” a representative of a Vietnamese mill said.
Though the focus of most Vietnamese customers was mainly on local purchases last week, the supply volume is limited, which is expected to keep pushing up prices for imported coils in the near future.
The SteelOrbis reference price for import SAE1006 HRC in Vietnam has been increased by $35-40/mt over the past week to $790-800/mt CFR.
