Vietnam’s import hot rolled coil (HRC) market has remained under pressure this week, with fresh deals continuing to emerge at relatively low levels amid persistently sluggish demand and aggressive competition among foreign suppliers. In particular, Indian and Indonesian suppliers have secured orders in Vietnam at competitive prices, while buyers have maintained a cautious stance and have continued pushing for additional discounts. At the same time, reduced availability of Chinese SAE1006 HRC following antidumping measures and export licensing requirements has continued to support sales opportunities for alternative Asian suppliers.
More specifically, following several deals signed for ex-India HRC at $585-590/mt CFR at the end of last week, market insiders have reported about more deals signed at the same price levels this week. Besides, according to sources, offers for ex-India SAE1006 HRC in Vietnam have remained mostly at around $590/mt CFR, down from the $610-615/mt CFR levels heard earlier last week, while bids from Vietnamese buyers have been reported at even lower levels below $580/mt CFR. “Some buyers have estimated the total volumes sold by Indian suppliers since the beginning of May at around 200,000 mt,” an Indian trader told SteelOrbis.
“Some Indian mills are willing to soften prices to book orders from Vietnam at $560-565/mt CFR levels, so net effective FOB levels are at around $530-535/mt for HRC,” another source said, adding, “For mills the logic is simple. If they are getting mill-friendly productive orders, which give a better yield in terms of production, shipment (big coils allowing faster vessel loading), payment terms and LC at sight or advance payment, then they go for such deals even at lower levels.”
At the same time, Indonesian suppliers have continued competing actively in Vietnam. In particular, a deal for around 60,000 mt of ex-Indonesia SAE1006 HRC is reported to have been signed at $585/mt CFR Vietnam for August shipment, compared to indicative Indonesian offers at $590-592/mt CFR for July-August shipment heard this week. These levels indicate slightly softer pricing compared to last week, when Indonesian SAE1006 HRC offers were estimated at $595-600/mt CFR.
Meanwhile, Japanese suppliers have remained largely uncompetitive in Vietnam, with fresh SAE1006 HRC offers still reported at around $635/mt CFR, compared to around $630/mt CFR heard last week.
On the Chinese side, although trading activity for SAE1006 HRC has remained almost absent due to antidumping measures, deals for other grades, like pickled and oiled coils, have continued to emerge. In particular, another transaction, for 5,000-7,000 mt of ex-China SPHC pickled and oiled coils, was heard at $583/mt CFR for July shipment, stable compared to similar deal levels reported last week. Besides, a deal for around 10,000-15,000 mt of ex-China Q195 HRC is reported to have been concluded this week at $5000-505/mt CFR Vietnam for early July shipment. In addition, indicative offers for ex-China Q235 HRC have been voiced at around $535/mt CFR Vietnam, up by $10/mt week on week.
The SteelOrbis reference price for imported SAE1006 HRC has settled at $585-590/mt CFR Vietnam, compared to $590-610/mt CFR at the beginning of this week, reflecting continued competitive pressure from Indian and Indonesian suppliers and persistently cautious buying sentiment in the Vietnamese market.