Prices for import HRC in the Vietnamese market have increased further in rare deals, and, though the price levels of local material are lower, the uptrend of import prices is expected to persist as supply is limited in comparison with demand.
A contract for 20,000 mt of Indian SAE1006 HRC was done at $930/mt CFR last week, sources confirmed. This price level is $20/mt above the average workable level earlier in the week, but most market sources believe that it has been transacted by a trader rather by a mill as this price “is very good. Offers from mills are at $930/mt FOB,” a trader said. The lowest possible level from mills is $940/mt CFR, according to another source.
A major Chinese steel producer offered SAE1006 HRC 2 mm at $970/mt CFR and some sources said that a deal was closed at $960/mt CFR, though this could not be finally confirmed by the time of publication. “This is very possible,” one source said, adding that the availability of thin coils has been very limited in Vietnam, especially at prices below $1,000/mt CFR. Usually the premium for thin coils from Japan and S. Korea to Vietnam is $20/mt compared to the price level for base grade HRC of 2.5-3 mm and above. But the latest offers from Japan and S. Korea have been at $1,000/mt CFR to Vietnam.
Though the focus of most Vietnamese customers was on local purchases last week, the supply volume is not sufficient and the overall 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 $10-20/mt to $930-940/mt CFR.
