Import HRC trade has remained limited in Vietnam this week as most customers have been waiting for more clarity over the price direction, while for now the market is witnessing continuous ups and downs in prices from Chinese suppliers.
Specifically, following a few deals for around 5,000 mt for ex-China SS400/Q235 HRC at $460/mt CFR at the beginning of this week, up by $10/mt week on week, most offers have settled at $465-470/mt CFR by Friday, September 19, compared to $460-475/mt CFR at the end of last week, but versus $450-455/mt CFR 10 days ago. “The Chinese were absent for two days this week, but no clarity has yet appeared after they returned as their offers keep rising and falling following the same trend in HRC futures prices in China,” a market insider told SteelOrbis.
Meanwhile, the SteelOrbis reference price for imported SAE1006 HRC in Vietnam has moved at $480-485/mt CFR, up by $5/mt over the past week, but down by $5-10/mt since the end of last week-beginning of this week, based on indicative offers for ex-China SAE1006 HRC, while no new deals have been reported so far.
At the same time, the general mood has remained rather pessimistic among Vietnamese customers due to the ongoing sluggishness of demand, though some of them expect ex-China HRC import offers to recover to some extent after the announcement in the US this week of an interest rate cut of 50 basis points, which has increased speculation regarding a possible easing of monetary policy in China, which could lead to a soft landing for China’s economy and consequently also support steel prices.