This week, a slight rebound has been seen in import prices from Chinese suppliers supported by the recovery of HRC futures prices in China. However, given no significant signs of a demand recovery in Vietnam’s market coupled with still slow trade for flat products in the main destinations overseas, most market insiders believe that for now the uptrend in Vietnam is shaky, though most believe import HRC quotations, especially from China, may have hit the bottom.
More specifically, offers for ex-China Q235 and Q195 HRC have increased to $474-476/mt CFR mainly for end-of-March and April shipment, against $468-470/mt CFR last week. “Last week’s bids at $460/mt CFR have already disappeared, and most buyers are just in a wait-and-see stance,” a Vietnamese trader told SteelOrbis, adding, “The market is frozen for both local and export markets.”
Meanwhile, the SteelOrbis reference price for imported SAE1006 HRC in Vietnam has settled at $480-495/mt CFR, from $480-490/mt CFR at the end of last week. “There have still been some occasional offers for ex-China SAE1006 HRC at $480/mt CFR, though most have decided to go slightly higher to $485-490/mt CFR levels,” a market insider said. Other foreign suppliers have been refraining from giving offers to Vietnam, with only occasional offers for ex-Indonesia HRC heard at around $490-500/mt CFR, while offers from Malaysia have been voiced at around $480-485/mt CFR.
“We doubt there will be any significant uptrend in the near term, but it is highly possible that we have reached the bottom,” another trader based in Vietnam told SteelOrbis.
It is notable that rising HRC futures in the Chinese market amid some improvement in sentiments and expectations for government support ahead of China’s National People's Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) have resulted in some slight rises in offer prices from Chinese sellers. As of February 19, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,430/mt ($478/mt), increasing by RMB 15/mt ($2.1/mt) or 0.44 percent since February 12, while up 0.32 percent compared to the previous trading day, February 18.
$1 = RMB 7.1705
