Prices for HRC in the Vietnamese market have continued to increase this week, with suppliers from China being the most active. However, Vietnamese importers are mostly refraining from new purchases, evaluating the situation for now, and expecting local producer Formosa Hi Tinh Steel to announce its new offers by the end of this week.
Market insiders said that, although some Chinese traders have been trying to sell their SS400 coils at $663/mt CFR, up by $13/mt week on week, most Chinese suppliers have increased their offers for SS400 HRC to $670-675/mt CFR, versus $650-660/mt last week, while some big mills have gone even higher, offering at $680/mt CFR Vietnam. At the same time, offers for ex-China SAE1006 HRC have increased to $690-710/mt CFR for end-of-May and June shipments, compared to $690/mt CFR last week. “I have received an offer for ex-China SAE1006 coils at $692/mt CFR, but some have already heard ex-China offers at $710/mt CFR. But some customers still believe they can book at around $680/mt CFR. This market is too confusing,” a Vietnamese trader told SteelOrbis.
At same time, other suppliers have continued to stay away from the Vietnamese market, given their focus on higher-priced destinations. Indicative offers for ex-India SAE100t6 HRC have been voiced at $735/mt CFR and above, while offers from Japan and Taiwan have been estimated by Vietnamese buyers at $750/mt CFR, the same as last week.
“Nobody doubts a further uptrend, but the question is how big it will be. So, while some customers expect Formosa’s new offers at $700/mt CFR, others believe the new prices are going to touch $710-720/mt CFR,” a market insider told SteelOrbis. In February, Formosa Ha Tinh Steel increased prices for SAE1006 (non-skin passed) by $60/mt to $695/mt CFR Vietnam, while Hoa Phat’s prices were announced at $690/mt CIF on March 1.
The SteelOrbis’ reference price for import SA1006 HRC has moved to $690-695/mt CFR, compared to $690/mt CFR at the end of last week.