Following the change of the mood in the Chinese HRC market early this week, with local and futures prices for HRC showing some rebound, sentiments have improved in the import HRC market in Vietnam as well. However, trade has remained weak as most customers expect local producer Formosa Ha Tinh to come out with new offers by the end of this week of the beginning of next week.
More specifically, offers for ex-China Q235/SS400 HRC have been voiced at $525-530/mt CFR, versus $518-522/mt CFR at the beginning of last week and up by $5/mt on the higher end of the range since yesterday, April 9. Besides, offers for Q195 and Q355 HRC have settled at $520/mt CFR and at $540/mt CFR, respectively, up by $5-10/mt week on week.
According to market insiders, the price recovery is mainly explained by the recovery of HRC futures prices in China attributed to the stimulus policies for the real estate market and the big rises in raw material prices. As of April 10, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,741/mt ($527/mt), increasing by RMB 82/mt ($11.5/mt) or 2.2 percent since April 3, while down 0.21 percent compared to the previous trading day, April 9.
At the same time, offers for ex-China SAE1006 HRC have been heard at $560-565/mt CFR, against $555/mt CFR at the end of last week. According to sources, trade activity has been extremely slow, with most big buyers having secured sizable volumes from local producer Hoa Phat Group last week at around $550/mt CFR and slightly below, while those customers who need skin-passed SAE1006 HRC are waiting for Formosa’s new prices. Thus, in the absence of new deals SteelOrbis’ reference prices for import SAE1006 HRC has moved to $560/mt CFR, up by $5/mt since the end of last week.