Following deals at $400-405/mt CFR earlier this week, most suppliers have increased prices for Chinese and Vietnamese importers further and this hike has been fixed in rare deals.
A deal for 10,000 mt from one of the major Indian mills has been signed at $412/mt CFR to Vietnam. Another transaction has been heard at $415/mt CFR, though the volume has not been disclosed by the time of publication. Previous deals for ex-Indian coils in Vietnam were at $403-405/mt CFR for a total 50,000 mt. Sources have said that most offers are above $415/mt CFR from India. Some traders have reported the tradable value at $410/mt CFR. Sporadic deals at higher price levels have also been due to the expected sharp production fall by Formosa Ha Tinh for July delivery, sources have said.
There has also been an inquiry for 45,000 mt of Turkish HRC for the Vietnamese market. The possible price level for the buyer’ side has been $410/mt CFR, but there has been no info about the deal being concluded. This CFR level corresponds to about $380/mt FOB for July shipment. However, the long lead time from Turkey to Vietnam may become an issue.
At the same time, offer prices for HRC have also increased for Chinese importers. Indian mills have been asking for $410/mt CFR and up to $420/mt CFR, local traders have said. South Korean offer prices are starting from $415/mt CFR China. Sentiment has not been very strong during the week. “One or two lots [of Indian HRC] were sold at around $400/mt CFR [this week]. Bids are not much higher now,” a trader said. But the overall outlook has improved today, Friday, owing to an increase in the local prices in China. The average HRC price in China has increased by RMB 35/mt ($5/mt) today to RMB 3,495/mt ($493/mt) ex-warehouse.
