Import prices of hot rolled coil (HRC) in Vietnam have posted a slight increase this week, driven primarily by higher offers from Chinese suppliers mainly because low-priced non-VAT offers from traders have disappeared from the market following the introduction of export licensing for certain steel products, including HRC. Meanwhile, other foreign suppliers of SEA1006 HRC have so far maintained their prices stable or applied only minimal upward corrections. Buyers in Vietnam remain cautious, with most adopting a wait-and-see stance to monitor whether the firmer sentiment in China will translate into sustained support for regional import prices.
More specifically, ex-China Q235/SS400 HRC, 2,000 mm offers in Vietnam have been voiced at $480/mt CFR for end-of-January shipment, compared to $470-472/mt CFR last week. At the same time, indicative offers for SAE1006 HRC from China have settled at $488-490/mt CFR level, up by $3-5/mt week on week.
Meanwhile, offers for ex-India SAE1006 HRC have been voiced at $479-482/mt CFR for February-March shipment, up by $4-7/mt week on week, though, according to sources, most bids are still voiced at $475/mt CFR.
Offers for SAE1006 HRC from other Asian suppliers, including those from Indonesia, Japan and South Korea, have been voiced at $495-510/mt CFR, depending on the supplier, mainly the same as last week.
Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $480-495/mt CFR Vietnam, compared with $475-490/mt CFR last week.
As of December 19, HRC futures at Shanghai Futures Exchange are standing at RMB 3,269/mt ($463/mt), increasing by RMB 37/mt ($5/mt) since December 12, while declining by 0.24 percent compared to the previous trading day, December 18.
“The Chinese market is stuck, with a random lift driven by the coking coal side, while most steel products are reacting calmly. There are no outstanding issues in the market, and waiting remains the preferred option ahead of the New Year,” a market insider said.
