The deal price level for imported HRC reached a new high in the Vietnamese market at the end of last week. Customers had no other option but to book from India at higher prices, while Chinese suppliers were mainly out of the market amid uncertainties over the export tax rebate cut.
Market sources confirmed that in the second half of last week two lots of Indian HRC of at least 20,000 mt each were sold at $780/mt CFR on average. Two traders said that the second deal was a few dollars above this level. The previous deal price level was reported at $765-770/mt CFR, which means that the further $10-15/mt increase in the market has already been confirmed in contracts. And market sources believe that there is still some space for prices to go up as “re-rollers are hungry to buy,” as one source said, adding that only India is offering firm volumes to Vietnam at the moment. With the global CRC and HDG markets on the rise, pushed by the shortage in the EU and high price levels in the US, Vietnamese re-rollers have been able to accept higher HRC feedstock prices, sources have told SteelOrbis.
After the latest sales, Indian producers have increased offers to $790/mt CFR, while some of them have already voiced $800-805/mt CFR prices to Vietnam.
The indicative price level for Chinese re-rolling HRC is $790/mt CFR, but very few firm offers have been heard lately. The market expects the Chinese authorities to announce a HRC export tax rebate cut from 13 percent at the moment to 9 percent or even below, and so the uncertainties regarding further export sales prices remain.
Other Asian HRC exporters like Japan, Taiwan and S. Korea have been offering not below $800/mt on FOB basis, seeing demand outside Vietnam and not having excess supply. Market sources said that the tradable value for thin ex-Japan or ex-South Korea coils should be $800/mt CFR, but no one from large mills has been interested in sales at such a level, taking into account the increased freight.
The SteelOrbis reference price for import HRC in Vietnam has increased by $10-15/mt from late last week to $780/mt CFR.
