Major suppliers have increased their import HRC prices to Vietnam on Tuesday, September 8, seeing an overall limited offer volume in the market and still bullish moods. A few low-volume deals have confirmed higher prices in the market as customers have a lack of options at the moment. Offers from all major exporters have increased further and local producer Formosa Ha Tinh is expected to announce new prices for November at a much higher level.
A contract for around 10,000 mt of Indian HRC has been done at $537-539/mt CFR to Vietnam. Also, sources have reported a trade at $540/mt CFR for ex-India material. As SteelOrbis reported late last week, the previous deals from India were done at $530-535/mt CFR. At the moment, offers from India have increased to $545-550/mt CFR, sources have said. “Prices increased $5-10/mt today, but bookings are limited,” a local source said.
Though Indian mills have increased billet prices above the market level, in the HRC segment their prices have been staying competitive in Southeast Asia. Producers are trying to hold their regular positions in the market, but most sources said that the overall offer volume from India has gone down recently.
Chinese sellers have also become more active recently with 30,000 mt of HRC in total sold at $535-540/mt CFR to Vietnam over the past week. At the moment, Chinese mills are targeting $550/mt CFR Vietnam.
Also, a contract for a small volume of HRC from Taiwan has been heard at $540/mt CFR Vietnam.
Japanese exporters have been seeing the tradeable value for their coils at $550/mt CFR and are officially offering at even higher levels, but no bookings have been heard. A week ago a cargo from Japan to Malaysia was booked at $540/mt CFR, while the latest contract to Pakistan has been closed at $560-565/mt CFR.
Market sources expect new prices for local HRC from Formosa Ha Tinh for November delivery to appear in the market soon. Non skin-passed SAE1006 HRC was offered at $505-510/mt CFR for October delivery a month ago, and prices will reach a minimum of $540-545/mt CFR this time, sources have said.
As a result, the SteelOrbis reference price for imported HRC in Vietnam has increased by $5-7/mt to $537-540/mt CFR.
