Prices for HRC in the Vietnamese market have increased this week. However, Vietnamese importers are mostly just evaluating the situation for now and plan to resume purchases when the trend becomes clear, as expected by the end of this week when local producer Formosa Ha Tinh Steel will announce its new offers.
Market insiders said that, although some Chinese traders have been trying to sell their SS400 coils from stocks at $585-590/mt CFR, up by $5-15/mt week on week, most Chinese suppliers have increased their offers for SS400 HRC to $600/mt CFR, while some big mills have gone even higher, offering at $610/mt CFR Vietnam. At the same time, offers for ex-China SAE1006 HRC have remained limited in Vietnam this week, with the indicative level standing at around $610-620/mt CFR, up by $10/mt over the past week.
In the meantime, offers for ex-Taiwan SAE1006 HRC have settled at $620/mt CFR on average, compared to $600-610/mt CFR last week. However, according to sources, the interest in ex-Taiwan materials have been limited “due to unpredictable shipment risks given the political tensions between China and Taiwan”. At the same time, ex-India boron-added coils have been offered by one of the Indian mills at $610/mt CFR Vietnam, though some other ex-India HRC offers have already been heard at $630/mt CFR. Furthermore, offers for ex-Japan SAE1006 HRC have been reported at $630-650/mt CFR Vietnam, compared to $600/mt CFR last week.
“We are still not sure if local prices are going to be on a further uptrend. It is expected to be $610-630/mt CFR for the local market in Vietnam from Formosa when this or next week new prices are announced,” a local trader said. In August, Formosa Ha Tinh Steel dropped prices for SAE1006 HRC (non-skin passed) by $45/mt to $610/mt CFR, while Hoa Phat’s prices were at $595 CIF.
The SteelOrbis’ reference price for import SAE1006 HRC has moved to $610/mt CFR, up by $10-20/mt over the past week, against the backdrop of the recent offers coming from all main suppliers.