This week has started with new turbulence in the import HRC market in Vietnam, given the news about the Chinese authorities starting an investigation into non-VAT trading, trying to limit exports. As a result, many Chinese traders have stopped offering cheaper HRC to Vietnam. At the same time, while panic has been mounting over the future scenario in China, Japanese HRC suppliers have managed to sell some volumes with additional discounts in Vietnam, though still at higher levels than those offered from China.
More specifically, most offers for ex-China SAE1006 HRC have been estimated by Vietnamese customers at $565/mt CFR, against $555-565/mt CFR last week. However, according to sources, while business has remained slow, some bids have still been heard at around $560/mt CFR level. In the meantime, according to sources, given the news about the investigation of non-VAT business from China, many traders have disappeared from the market, though this week offers for Q235 and SS400 HRC have been heard at $540-542/mt CFR for June shipment, up by $2/mt week on week, while offers for Q355 HRC have been estimated at $555/mt CFR. “Non-VAT traders are observing the Chinese authorities’ actions and trying to ship goods out as quickly as possible during this final stage,” a market insider told SteelOrbis.
“With all this news, many people expect prices to increase, though it is still early to talk about a significant hike as the local Chinese market has failed to provide firm support. Besides, there is information that until May 10 it will still be possible to ship cheaper non-VAT HRC without a problem,” a Vietnamese trader told SteelOrbis.
Meanwhile, this week according to sources, a deal for around 30,000 mt of ex-Japan SAE1006 HRC has been reported at $568/mt CFR for June shipment, while most Japanese offers have been heard at $570-575/mt CFR levels, down by around $5/mt week on week. Besides, suppliers from Taiwan have been offering their SAE1006 HRC at around $575/mt CFR Vietnam this week. Offers for ex-India HRC have been estimated at around $570-575/mt CFR levels as well.
The SteelOrbis’ reference price for import SAE1006 HRC has moved to $565-568/mt CFR, against $555-565/mt CFR last week, with the lower end of the range corresponding to ex-China indicative offers, while the higher end corresponds to the deal price for ex-Japan HRC.