While demand for HRC has continued to weaken in Vietnam, affecting import trade activity, HRC exports have been rebounding, with new deals for large volumes reported to have been sold to India and Turkey.
More specifically, market insiders have reported 105,000 mt in total of HRC sold to India by Vietnamese producer Formosa Ha Tinh Steel at $570-575/mt CFR (around $535-540/mt FOB) at the end of last week-beginning of this week, following a deal for around 40,000-50,000 mt at $550/mt CFR ($515/mt FOB) two weeks ago. Another deal for around 10,000-20,000/mt of ex-Formosa HRC has been reported in Turkey at $575/mt CFR.
“The local market is not supportive at all, so the only chance for Formosa to survive is to export,” a Vietnamese trader said.
Meanwhile, import HRC prices have been moving in different directions in Vietnam, with no deals reported so far due to slack demand. In particular, Chinese traders, who were offering SS400 HRC at $540/mt CFR last week, have increased their offers to $545-550/mt CFR this week, while offers for ex-China SAE1006 have been voiced at a minimum of $570/mt CFR, up by $5-10/mt week on week. In the meantime, suppliers from Japan and India have decreased their offers for SAE1006 HRC to $550/mt CFR, down by $10/mt week on week.
The reference price for import SAE1006 HRC in Vietnam has come to $550/mt CFR, compared to $550-560/mt CFR, given the most attractive offers coming to the country.