The situation in Vietnam’s import HRC market has worsened even further this week, as local coated steel producers have been facing difficult times in the export market in addition to reduced domestic consumption.
The lowest import HRC prices have been heard from traders, who are trying to find buyers for ex-Russia HRC at $850-860/mt CFR, even though the mill has not provided such a low level. Market sources said that the outlook for September is poor and traders hold bearish views, while offering at the current prices. At the same time, “There is no deal now. The mills only buy material when they find sellers for the finished steel output,” one trader said.
But at the moment, Vietnamese re-rollers have been facing more difficulties as, in addition to at least 50 percent lower local demand, they are facing lower demand in the export market. “The EU demand is weak due to the holiday season, plus the news of the antidumping investigation for coated steel coils in Mexico has made Vietnamese mills hesitate to buy raw materials,” a source said. As SteelOrbis reported yesterday, Mexico’s economy secretariat said this week it has commenced an antidumping investigation into imports of Vietnamese coated flat steel, following a request from domestic producers Ternium Mexico and Tenigal.
There have been no ex-India HRC prices at below $890/mt CFR in Vietnam and market sources have reported a lack of offers from India, as exporters from this country have been focusing mainly on other higher-priced destinations like the Middle East, for example.
An indication for thin ex-Japan coils to Vietnam has been heard at $970-980/mt CFR from a trader, much lower than the previous levels of $1,000-1,020/mt CFR in offers from a mill, but still too high for most customers.
The reference price for imported SAE1006 HRC in Vietnam has remained at $880-890/mt CFR so far due to a lack of traders and firm offers in the market.