Vietnamese importers keep buying ex-India HRC, further price decrease expected

Friday, 13 September 2019 10:22:48 (GMT+3)   |   Istanbul

Indian hot rolled coil (HRC) suppliers have continued to dominate the Vietnamese import market this week. Prices for SAE1006 have moved down slightly to $455-460/mt CFR, the upper end of the range has lost $5/mt since last week. Two deals for about 50,000 mt of Indian coils in total from the mill have been concluded at $455/mt CFR and at $458/mt CFR, both for October shipment, SteelOrbis was informed.

Though mills have been rejecting to sell below $455/mt CFR, “some position cargoes could have gotten sold, which is already on the boat, at lower prices,” an Indian supplier commented. The price level for position cargoes has been heard at $450-452/mt CFR Vietnam this week.

Offer prices for HRC ex-Brazil have been reported at slightly below $460/mt CFR, Russian suppliers has also been ready to negotiate at this level. However, “bids fell to $450/mt CFR and below,” a local trader said.

Chinese HRC has been unpopular in the Vietnamese market due to still very high prices. Offers for SS400 coils have been at $470-475/mt CFR and even with discounts this level has been unattractive for customers.

Japanese and Korean suppliers have been interested in sales to Asia and have been offering HRC to Vietnam at $470-480/mt CFR and buyers have been waiting for some additional discounts.

Market participants have been waiting for the announcement of local HRC prices for November shipment by Formosa Ha Tinh next week. It is expected that the producer will cut it by $20-30/mt from comparatively high level for October delivery HRC $521-531/mt CFR.  

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