Following a slight price recovery seen in Vietnam’s HRC import market last week, this week has brought a drop in prices amid decreases in China. In particular, considering that prices in the local and futures HRC markets in China dropped significantly over the weekend, some traders have started to offer and sell HRC position cargoes at much lower levels, though offers from Chinese mills and other foreign suppliers, like those from Japan, Taiwan and South Korea, still voice at high levels.
Accordingly, although most Chinese suppliers have kept offering SAE1006 HRC at $765-775/mt CFR, some traders have come up with new offers at $755-757/mt CFR Vietnam and “new deals are likely to be signed at $750/mt CFR, as nobody wants to pay more than $750/mt CFR,” according to market insiders. Meanwhile, prices for ex-China SS400 HRC, coming mostly from traders, have fluctuated from $745-755/mt CFR two weeks ago to $758-760/mt CFR last week and to $745-755/mt CFR again today, Monday, June 13. Besides, a batch of ex-China SS400 coils has reportedly been sold by a trader at $738/mt CFR Vietnam, today.
This decrease in Chinese prices is mainly connected to worse sentiments in the Chinese futures and local HRC markets due to the weakness in demand. In particular, on Monday, June 13, domestic HRC prices in China have fallen by RMB 55/mt ($8/mt) compared to June 10 to RMB 4,855/mt ($721/mt) ex-warehouse on average, according to SteelOrbis’ data. Meanwhile, Chinese HRC futures prices have lost RMB 102/mt ($15/mt) since Friday, June 10.
“For now, only traders have dropped their export prices, but we are still waiting for moves by the Chinese mills and Vietnam’s Formosa Ha Tinh Steel,” a market insider told.
Meanwhile, offers for ex-India boron-added HRC have been heard at $745/mt CFR Vietnam, the same as last week. However, according to market participants, some Indian HRC suppliers have been asking Vietnamese customers to bid at $740/mt CFR this week.
Other foreign suppliers, like those from Japan, South Korea and Taiwan, have continued to stay out of Vietnam’s HRC import market. The indicative offers for ex-Taiwan HRC have settled at $760-770/mt CFR, while the indicative offers for ex-Japan and ex-South Korea are at $780-790/mt CFR.
The SteelOrbis’ reference price for import SAE1006 has moved to $750-770/mt CFR, compared to $760-780/mt CFR last week, considering the lower position offers from Chinese traders and the negative sentiments prevailing in the market.