Stricter lockdown in the south of Vietnam and bearish outlook for the near future have put additional pressure on import HRC prices in Vietnam. Most buyers in the country have been not interested in purchases, saying that in the current conditions, the tradable level is far below $900/mt CFR.
Indicative price level from the major Russian supplier for SAE1006 coils in Vietnam is $880/mt CFR, but traders have been bidding at below $850/mt CFR, predicting that end users’ demand will remain poor next month too. “We heard traders are trying to find buyers at $860/mt CFR, but no success,” a local source said. “No new deals even after the price drop,” another source said.
The situation in the Vietnamese import HRC market has worsened further as the stricter lockdown has started in the major hub – Ho Chi Minh City from August 23, prohibiting residents from leaving their homes. Also Vietnam extended the ban of nonessential operations in Hanoi until September 6.
Apart from Russia, some offers at below $900/mt CFR mark have been reported in Vietnam for Indian HRC, offered by traders – at $890/mt CFR, while most mills from India have been offering $910-915/mt CFR, SteelOrbis has learned.
Japanese, Korean and large Chinese producers have been holding high prices – at $980-1,020/mt CFR, fully out of interest of buyers in Vietnam. The tradable level for thin 2 mm coils has been assessed by market sources at $910-920/mt CFR maximum.
The reference price for imported SAE1006 HRC in Vietnam has fallen further - to $880-890/mt CFR this week, down by $15-20/mt over the week.