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Price rally continues in Vietnam's imported HRC market, trades remain limited

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BigMint Bureau

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16 Nov 2020, 18:21 IST

Price rally continues in Vietnam's imported HRC market, trades remain limited

The imported HRC offers in Vietnam have increased by around $20-40/t w-o-w basis from major exporting nations amid bullish trends hovering in the global market.

Factors driving the imported HRC offers to Vietnam-

1. Improved demand in China and strengthening RMB - The Chinese mills have been enjoying better demand and margins in the domestic market. Along with this, the continual future market gains and strengthening RMB against $ resulted in an uptrend in Chinese export offers for the past couple of days. China origin Benxi Iron and steel is offering around $580/t CFR basis which was around $555-560/t CFR last week.

2.Hike in offers from India on limited allocations- Indian steel manufacturers have resumed HRC export offers and currently offers are around $575/t CFR Vietnam basis for Jan- Feb shipments. Last week a major private steel mill concluded a deal of around 25,000 t HRC at $560/t CFR Vietnam for Jan shipments. Improved domestic demand resulted in limited allocations for exports leading to a limited offers for Vietnam, in turn resulting in price hike.

3.Japanese mill raised HRC offers by $40/t w-o-w- Major Japanese mills have raised HRC offers significantly by $40/t and offering around $600/t CFR basis. Mills have raised the price on improved domestic demand in the auto and construction sector.

Domestic offers -

Vietnam's largest steelmaker, Formosa Ha Tinh (FHS) has recently announced an increase in its HRC list prices sharply for Jan'21 delivery by $25/t. Current offers for HRC (SAE 1006, skin pass) are offered at a $560/t CIF basis and non-skin pass is at a $555/t CIF basis.
Hoa Phat is offering HRC at different prices for different destinations. The company is offering HRC at $545/t CFR Haiphong and $550/t CFR to Ho Chi Minh port.

Outlook- Although, imported HRC trades are yet to be concluded at increased offers on lower bids. However, considering continuous price rally, it seems trades may be seen concluding at increased offers.