Prices for imported HRC in Vietnam have declined further this week, pushed down by very low demand and the drop in local prices by Hoa Phat, which have been among the most competitive recently. Local mills in Vietnam have been still active in the export market, as they do not expect demand in the domestic market to improve any time soon.
Ex-India SAE1006 prices have declined from $930/mt CFR to $915-920/mt CFR, but most suppliers have not been ready to go much lower, seeing no response from Vietnamese customers. “Bids are below $900/mt CFR. Customers don’t want to buy. Who needs to buy will buy locally,” a source said. New prices for SAE HRC for Hoa Phat for September-October are at $900/mt CFR in the north of Vietnam, at $903/mt CFR in the central part of the country and at $905/mt CFR in the south, as SteelOrbis reported earlier this week.
“Now the Covid-19 situation is very serious in Vietnam. The government has already asked the army to ensure control and the lockdown seems likely to be extended to September,” a source said.
No fresh offers have been heard for ex-Russia HRC, as sellers have been focusing on alternative markets like Pakistan, in particular, where bids are much higher than in Vietnam.
The reference price for imported SAE1006 HRC in Vietnam has been settled at $900-905/mt CFR this week, with the higher end of the range dropping by $15/mt over the past week.
The weak situation in the export market has been putting pressure on local HRC suppliers, who have been targeting the US market recently. Sources said that both Hoa Phat and Formosa have sold some volumes there recently, but the final price has not been disclosed by the time of publication. Offers for ex-Vietnam HRC to Turkey and the EU have been heard at $1,070/mt CFR. “They are targeting the EU, the US and Latin America,” a source said, explaining the relatively high price level.