This week has brought a significant decrease in HRC prices from Chinese suppliers to Vietnam, with offers for ex-China SS400/Q235 HRC falling by at least $15/mt since the beginning of last week. According to market insiders, despite such a sharp drop, deals have been very scarce so far, with Vietnamese customers expecting more declines in prices in the short run.
Specifically, offers for ex-China SS400/Q235 have been voiced at $503-505/mt CFR mainly for September shipment, against $520-mt CFR at the beginning of last week and deal prices at $513-515/mt CFR at the end of last week. According to sources, at the end of last week several deals for around 10,000 mt in total of ex-China Q235 HRC were signed at $513-515/mt CFR. Besides, offers for ex-China Q195 HRC have been heard at $500/mt CFR for September shipment, down by $15/mt week on week.
As for SAE1006 HRC segment, most offers have been voiced at $520-530/mt CFR for September shipment, down by $10/mt week on week, while most market insiders estimate workable prices at not higher than $520/mt CFR levels. Thus, the SteelOrbis reference price for imported SAE1006 HRC has fallen to $520/mt CFR, versus $530-540/mt CFR at the beginning of last week.
At the same time, other suppliers have been mainly out of the Vietnamese market with indicative offers for ex-Japan SAE1006 HRC estimated at $550/mt CFR. Besides, according to sources, offers for ex-Indonesia HRC, from Dexin Steel, have been heard at $535/mt CFR and are considered “too high to be acceptable” by most Vietnamese customers.
As of July 24, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,573/mt ($491/mt), decreasing by RMB 95/mt ($13/mt) week on week, while down by 1.08 percent compared to the previous trading day, July 23, according to SteelOrbis data.