Prices in the import HRC market in Vietnam have posted just a slight decline this week, but this has been due mainly to the change of buyers’ focus to local purchases after major domestic producers cut their prices sharply. At the same time, overseas suppliers have been taking their time to evaluate the market before cutting prices further.
The latest deal for ex-India SAE1006 HRC was done at $745/mt CFR for February shipment early this week for 10,000 mt, down by $5/mt from a contract a week before. But overall demand has declined even further this week as “Formosa is offering very cheaply. All customers who need to replenish stocks will buy locally now,” a source said.
The last offers for February shipment HRC from Indian mills have been at $750/mt CFR, versus $750-760/mt CFR last week, while some mills have been ready to agree at $740/mt CFR, but there has been no interest, according to another source. Suppliers are evaluating the market before starting to announce official prices for March shipment.
Vietnamese producer Formosa Ha Tinh announced its new prices for March shipment non-skin passed SAE1006 coils at $750/mt CFR, cutting them by $70/mt since last month. Given the weak consumption in Vietnam even though customers are in the market for local sourcing at the moment, HRC exports from Vietnam may rebound in the near future.
According to sources in Pakistan, an offer from Formosa to the export market has been discussed at $740/mt FOB, and it was better that the offer from the major Taiwanese supplier, at $750-760/mt FOB. But in any case, the Vietnamese producer will face some competition in Asia with other suppliers from the region, Indonesia in particular, while Indian suppliers will remain competitive in the Middle East and Africa.
Hoa Phat Group has been in negotiations for SAE1006/SS400 HRC in the local market at $730-735/mt CFR for March shipment. Usually, buyers in Vietnam are active in purchases from Hoa Phat for pipe-making needs, and from Formosa for re-rolling needs.
The SteelOrbis reference price for imported HRC in Vietnam has been lowered to $745/mt CFR, down by $5/mt on average from last week.