Import prices for ex-China hot rolled coil (HRC) into Vietnam have edged higher this week, supported by an uptrend in Chinese HRC futures prices. Suppliers from other regions, such as Japan, have also adopted a more bullish stance, and offers from Indonesia have largely held steady, while Vietnamese buyers have continued to push for lower deal price levels. Meanwhile, interest in domestically produced HRC has picked up following last week’s announcement by local producer Formosa Ha Tinh Steel (FHS), which set new prices at $497–507/mt CIF, depending on purchase volumes.
More specifically, this week, ex-China 2,000 mm Q235 HRC offers, which are not targeted by antidumping (AD) duty, have been voiced at $463-465/mt CFR, following several deals at $458/mt CFR at the end of last week. Meanwhile, offers for ex-China SAE1006 HRC have been estimated at $485-490/mt CFR compared to $470-475/mt CFR at the beginning of last week. Such increase in ex-China offers is explained by the increase in HRC futures prices, which by July 16 have settled at RMB 3,253/mt ($455/mt), increasing by RMB 63/mt ($8.8/mt) or 2.0 percent since July 9, though decreasing by 0.31 percent compared to the previous trading day, July 15.
Other foreign suppliers have been offering SAE1006 HRC at higher levels as there is less competition with Chinese SAE1006 HRC suppliers due to AD duty. According to sources, a deal for ex-Japan SAE1006 HRC for around 30,000 mt in total was booked to Vietnam at $497/mt CFR last week, while most offers have settled at $510-515/mt CFR this week, mainly for September shipment.
Offers for ex-Indonesia SAE1006/SS400 HRC have been voiced at around $490-500/mt CFR, the same as last week. However, most bids are still reported at $480-485/mt CFR levels.
As a result, the SteelOrbis reference price for imported SAE1006 HRC has moved to $485-500/mt CFR, up by $5/mt week on week.
At the same time, according to sources, interest in domestic HRC has strengthened after local mill FHS announced new pricing last week at $497-507/mt CIF, depending on the order size. The relatively competitive pricing, combined with concerns over rising import offers and longer lead times, has prompted more Vietnamese buyers to shift their focus toward local supply. “Some buyers see now domestic procurement as a more secure and cost-effective option in the current market environment,” a market insider told SteelOrbis.