The recent increase in offer prices from all major sellers together with a bullish outlook and limited allocation in the market have led to visible hike in the workable price level for imported HRC in Vietnam. Though deals have been rare so far, suppliers have stronger positions than buyers at the moment, according to sources.
The workable price level for imported HRC in Vietnam has increased by $15/mt since early this week and by $25-30/mt from last week to $495-500/mt CFR. A contract for Indian SAE1006 HRC was heard at $495/mt CFR late this week. Another contract has been reported at $505/mt CFR, also for Indian coils, but the quality of the material has not been disclosed. Some sources believe the price included at least $5/mt extra. “There is no problem in selling at $495/mt CFR now,” a source said.
Indian mills have been unwilling to give discounts so far, seeing some revival of demand in their domestic market and assessing their available allocation for October shipment.
A small position cargo from a trader of Chinese HRC has been heard at $500/mt CFR Vietnam, which has come as a surprise to market sources, taking into account that all offers from Chinese mills are above $500/mt FOB.
South Korean mills have also a limited quantity for the Vietnamese market at the moment. Rare offers have been heard at $515-520/mt CFR.
Some sources report that overall demand in Vietnam is not very strong and some customers are still insisting on prices not above $480/mt CFR. Nevertheless, the rising offers and the strong position of exporters have caused workable price levels to move up and some further slight gains are possible in the near future.
