Following a significant decline in ex-China HRC prices in Vietnam last week, this week import offers have continued to show a downward correction given further declines in Chinese domestic HRC prices due to decreasing HRC futures prices.
After several deals for ex-China Q235 HRC were reported at $515/mt CFR at the end of last week, down by $15/mt, the material has changed hands at $502-503/mt CFR this week. Meanwhile, by Wednesday, October 23, offers for ex-China Q235 in Vietnam have been reported at $500-505/mt CFR, against $515/mt CFR a week ago and down by $5/mt on the lower end of the range compared to the previous day.
In the meantime, offers for ex-China SAE1006 HRC have been estimated at around $520-525/mt CFR for end November-December shipment, compared to $540/mt CFR last week. Besides, suppliers from Japan have been offering SAE1006 HRC at $540-545/mt CFR Vietnam for December shipment, mainly the same as last week. However, according to sources, only a deal for ex-China SAE1006 HRC is reported to have been signed at $520/mt CFR this week, for a small quantity, while most Vietnamese customers have been refraining from new purchases. “Deals have been rare as most buyers still believe there will be further declines for ex-China coils. At the same time, other suppliers, like those from Japan, have no intention of going lower and are firm in their offers. Thus, the future trend is hard to predict,” a market insider said.
The SteelOrbis reference price for import SAE1006 HRC has softened to $520-540/mt CFR, down by $5-20/mt week on week, with the lower end of the range corresponding to the most competitive ex-China offers, while the higher end still reflects tradable prices for ex-Japan HRC.
As of October 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,476/mt ($488/mt), decreasing by RMB 111/mt ($15/mt) since October 16, while down 0.32 percent compared to the previous trading day, October 22.