The uptrend of prices has gathered momentum in the Vietnamese HRC market this week, with numerous deals reported at higher levels, mainly for ex-China coils. Most buyers expect a further increase considering the stronger sentiments in China and the rapid change in the global trade environment after the Russian invasion of Ukraine.
Accordingly, numerous cargoes for around 120,000 mt in total of SAE1006 HRC from Chinese suppliers were sold this week at $870-880/mt CFR, which is up by $20/mt on average from the tradable level reported early this week and up by $30/mt from that heard last week. Meanwhile, offers from China have already been heard at $890-895/mt CFR for SAE1006 HRC, while offers for ex-China SS400 HRC have increased to $865/mt CFR, up by $35/mt week on week. Moreover, according to sources, several deals for ex-Japan SAE1006 HRC have been reported at around $900/mt CFR Vietnam. “When there is an unwanted conflict and sanctions, sources of material are more limited. China is reducing their production and is focusing on local demand, so supply is expected to be tight. Iron ore and other mineral ore mostly comes from Russia, Australia and Brazil. So now, we have lost the Russian source. So, people have started to buy because all expect an increase,” a market insider told SteelOrbis.
Meanwhile, Indian HRC suppliers have continued to stay out of the Vietnamese market, with a few offers coming at $910-920/mt CFR Vietnam. “Today, India quoted at $1,100/mt CFR Europe, so Vietnam expects higher prices from India as well,” a Vietnamese mill representative told SteelOrbis.
The SteelOrbis reference price for import SAE1006 HRC has moved to $870-880/mt CFR, up by $20/mt over the past three days, amid the recent deals concluded with Chinese suppliers.