Trading activity in Vietnam’s HRC import market has fallen significantly this week as most buyers have not been interested in purchases, seeing a slowdown in consuming industries due to the spread of Covid-19. Only some rare deals for ex-China HRC have been reported over the past ten days at stable low prices.
The latest import bookings to Vietnam have been heard at $655/mt CFR, almost in line with the previous level. Last week, some position cargo changed hands at $645/mt CFR, but this was an exception as a trader needed to sell, while “a mill’s sale was at $655/mt CFR last week and it is still the market level now,” a source said. “Vietnam has been very quiet and I am expecting the same calm until February 20,” another source said.
Demand for local HRC has been limited as Formosa Ha Tinh rolled over its prices for April deliveries for re-rolling grade HRC to local customers at $720-725/mt CFR. This price level has been assessed as too high by customers.
Some price rebound is possible after the Chinese New Year in the last days of February, sources have said. “Everyone has eyes on China. Will it cut tax rebates [on export of HRC from 13 percent to 8 percent]? It will change a lot of the dynamics of the HRC business,” an international trader commented.
The SteelOrbis reference price for imported HRC has stayed at $650-655/mt CFR, showing minimal changes over the past week.
