HRC import trade in Vietnam improves after ambitious hike in local prices

Wednesday, 17 January 2024 15:52:55 (GMT+3)   |   Istanbul
       

Import trade activity in Vietnam has been more active in the SAE1006 HRC segment during the past week, following the announcement of the significant increase in local HRC offers from Formosa Ha Tinh Steel last week. However, given the continuous downward corrections of import prices for ex-China SS400/Q195 HRC, Vietnamese buyers have been more cautious in terms of purchases, with only small-volume purchases reported so far.

More specifically, following a sharp increase in local HRC prices to $647-670/mt CIF, depending on the material, announced by Formosa Ha Tinh Steel at the end of last week, market insiders have reported higher business activity in the import segment. A deal for around 30,000 mt of ex-China SAE1006 from a first-tier mill was reported in Vietnam at $618/mt CFR for end-of-February shipment last week, followed by more deals for smaller tonnages at $610/mt CFR and $613/mt CFR, respectively. Meanwhile, this week new offers for ex-China SAE1006 HRC from first-tier mills have been estimated at around $610/mt CFR and slightly below. At the same time, according to some Vietnamese traders, buyers’ price ideas for ex-China position cargoes are still estimated at around $590-600/mt CFR, though sellers have refused to accept this level so far.

Meanwhile, several deals for ex-China Q235/195 have been reported in Vietnam at $562-563/mt CFR, with offers standing at $565/mt CFR, down by $5/mt on the higher end of the range week on week. Offers for ex-China SS400 HRC have been estimated at $570/mt CFR, against $570-575/mt CFR last week.

Apart from deals for Chinese HRC, Vietnamese buyers managed to secure deals for ex-India SAE1006 HRC last week, with around 50,000 mt in total reported to have been booked at $615-620/mt CFR, while most offers have been voiced at $625-635/mt CFR levels.

The SteelOrbis reference price for imported SAE1006 HRC has settled at $600-605/mt CFR, versus $590-605/mt CFR last week. The price is slightly lower than those recorded in the latest deals as most customers have continued to expect more discounts in new deals, though $590/mt CFR is considered even by the most positive customers as being too low to be workable.


Similar articles

Major steel and raw material futures prices in China – November 22, 2024 

22 Nov | Longs and Billet

Chinese domestic PPGI prices keep slipping amid slack demand

22 Nov | Flats and Slab

Flat steel prices in local Taiwanese market - week 47, 2024

21 Nov | Flats and Slab

Malaysia’s Eastern Steel ready to start HRC sales, impact on export markets to be limited

21 Nov | Steel News

Local EU HRC prices fail to rise in new deals amid insufficient demand

21 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 21, 2024 

21 Nov | Longs and Billet

US may raise dumping margin for HRC from Nippon Steel

21 Nov | Steel News

Foreign HRC suppliers attempt hikes in Vietnam, but buyers still insist on discounts

20 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 20, 2024 

20 Nov | Longs and Billet

China’s HRC output up 2.2 percent in January-October

20 Nov | Steel News