Rapid fall of local flat steel demand in Vietnam due to the outbreak of Covid-19 and fresh lockdown, has put pressure on slab and HRC producers in the country. They have started to offer more actively in the export market to redirect a part of allocation from the local market.
One of the Vietnamese HRC producers has been asking €930/mt CFR in Europe, but sources said that the market is more suitable for pipe-making. Another Vietnamese mill has sold SAE1006 rerolling grade HRC to Europe, and though the final price has not been confirmed by the time of publication, it was above €950/mt CFR, sources said.
Europe has been an attractive destination for Vietnamese sellers. Some sales are possible in the near future to Turkey as well, if the supply pressure remains. The tradable price level for imported HRC to Turkey was $940-950/mt CFR.
In the import market in Vietnam, the highest price level was $925-930/mt CFR, but in the current situation, these rerollers, who will need to book, will ask for discounts. The official price level for September delivery from Formosa Ha Tinh was announced at $970/mt CFR, from Hoa Phat – at $920-925/mt CFR.
In the slab segment, an offer from Vietnam has been heard at $865/mt CFR for the prime grade slabs, but bids have been lower at not above $850/mt CFR Asia.
