Import HRC trade has remained limited in Vietnam this week as most customers are expecting more clarity over the price direction, while for now “all are tired from the ups and downs from Chinese suppliers every day”, as one source commented.
Specifically, following some recovery in HRC futures prices in China at the beginning of the week, new offers for ex-China Q235/SS400 HRC have increased by $15/mt since the end of last week, reaching $500/mt CFR for September-October shipment. However, by Wednesday, August 7, as HRC futures prices have slumped again, new prices from Chinese traders have been voiced at $495/mt CFR and some at even $490/mt CFR. According to sources, following several deals for at least 10,000-15,000 mt in total signed at $485-488/mt CFR last week, this week several bookings for small tonnages have been reported at $490/mt CFR.
In the SAE1006 HRC segment, trade activity has been close to zero, with most offers from Chinese traders reported at $510/mt CFR, against $506-510/mt CFR at the end of last week. Meanwhile, offers from first tier Chinese mills have been estimated at $515-520/mt CFR, up by $5/mt on the higher end of the range week on week.
The SteelOrbis reference price for imported SAE1006 HRC has risen to $510-515/mt CFR, versus $506-515/mt CFR at the end of last week.
As of August 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,481/mt ($488/mt), decreasing by RMB 7/mt ($1/mt) or 0.2 percent since July 31, while down 0.66 percent compared to the previous trading day, August 6.
