This week has started with sharp decreases in HRC prices from Chinese suppliers and traders for Vietnam, especially those who are dealing with the scope of a non-VAT trading policy. Big Chinese mills have slightly lowered their offers as well given worsened sentiments in China on sharp drop of futures and local prices.
At present, offers for ex-China SAE1006 HRC have been voiced at $680-705/mt CFR, depending on supplier, versus $690-710/mt CFR last week. At the same time, offers for ex-China SS400 HRC from most suppliers have settled at $650/mt CFR, down by $20/mt, while offers from traders, who are avoiding Chinese taxes have been offering at around $635/mt CFR. “You can see Jingtang port near Anfeng mill, one of the most price competitive private owned mill in northern China, has congestion because of traders who are urgently exporting their cargoes in case government take measures stopping export without tax,” a market insider told SteelOrbis.
The decrease on ex-China HRC prices is mainly explained by the significant drop in ex-China HRC futures prices, which by Wednesday, March 22, have lost around RMB 152/mt ($22/mt) since March 15, falling to RMB 4,286/mt ($623/mt).
Meanwhile, offers from other suppliers have remained extremely rare and at the same time high as compared to Chinese ones. In particular, offers for SAE1006 HRC from South Korea and Taiwan have been heard at $750/mt CFR, same as last week, while indicative offers for ex-India HRC have settled at $730-740/mt CFR Vietnam, according to sources. However, no offers from Japan have been heard in Vietnam this week so far.
The SteelOrbis’ reference price for import SAE1006 HRC has moved to $680-685/mt CFR, compared to $690-695/mt CFR last week on lower offers coming from China.
