The prices for imported HRC in Vietnam have moved up further by the end of this week, with a number of trades reported mainly for Chinese-origin coils. Due to the recent continued appreciation of the Chinese currency and firm demand in the local and export markets, Chinese HRC suppliers are targeting higher prices.
According to sources, in the middle of this week the tradable value for ex-China SAE1006 HRC was at around $540-545/mt CFR Vietnam, up by $10-15/mt compared to late last week. Meanwhile, on Friday, November 6, two deals from major Chinese mills for the same grade have been reported at $550/mt CFR and $553/mt CFR, SteelOrbis has learned, indicating a steady increase in deal prices. The major reason for the sharp hike was the shortage of material in the local market in Vietnam due to a disruption in deliveries caused by Typhoon Molave, the strongest storm to hit Vietnam in 20 years.
As a result, the SteelOrbis reference price for imported HRC in Vietnam has reached $545-555/mt CFR, surging by $20/mt on average from last week.
Chinese suppliers have also been successful in sales of SS400 HRC to Vietnam this week. For instance, the latest deals for this grade have been at $530-535/mt CFR since the beginning of the week and for now suppliers are targeting $535-540/mt CFR in Vietnam. Demand from Pakistan has also supported ex-China HRC export prices. As a result of steady sales, the tradable price level for ex-China SS400 HRC has increased to $525-530/mt FOB, versus $520/mt FOB reported on Tuesday this week. “The trend is clearly up. Chinese mills target higher prices due to the stronger yuan,” a trader said.
Offers from some Indian mills for SAE1006 HRC for Vietnamese customers have increased by $10/mt since Monday to $560/mt CFR. It is expected that South Korean and Japanese exporters will announce their new prices at $570/mt CFR minimum next week, sources have said.
The typhoon has mainly hit deliveries of coils in the Vietnamese market, but production has also seen some losses. According to sources, the overall supply volume in November may be five percent lower in the domestic market, though “it is not a big problem,” an official at the mill said. Next week, local producer Formosa Ha Tinh is going to announce new prices for January delivery, which are expected to post visible increases.