Vietnam: Buyers Turn Cautious Over Volatility in Chinese Steel Prices

Chinese steel prices started to recover in last two days and mills are in anticipation that prices will recover in near term. Many Chinese mills were heard to keep their offers on hold which resulted in Vietnamese buyers turning cautious over price volatility.

As per reports, The United States and China reached a 90-day ceasefire in a trade dispute. The breakthrough came after a dinner meeting Saturday between President Donald Trump and Chinese leader Xi Jinping at the Group of 20 summit in Buenos Aires. Trump has imposed import taxes on USD 250 billion in Chinese products - 25% on USD 50 billion worth and 10% on the other USD 200 billion. Trump had planned to raise the tariffs on the USD 200 billion to 25% if he couldn't get a deal with Xi.

Thus Chinese mills have stopped offering HRC over anticipation of higher prices in which in turn will increase offers for imported HRC to Vietnam in near term.

Few market sources shared that buyers are holding back their purchases amid absence of clarity in prices as Chinese steel prices started to rebound."

Current HRC trade offers to Vietnam - Week 48, 2018
1.HRC (SAE 1006) 2-3mm / Chinese offer - Benxi Steel is at USD 495/MT CFR Vietnam.Last offers were heard at USD 500/MT CFR basis.

2.HRC (SAE 1006) 2-3mm / Chinese offer - Rizhao Steel is at USD 485/MT CFR Vietnam.

3.HRC (SAE 1006) 2-3mm / Chinese offer - Xinyu Steel is at USD 475/MT CFR Vietnam.Last offers were at USD 480/MT CFR basis.

4.Currently no active offers for imported HRC to Vietnam from Indian mills.Indian mills have recently slashed domestic HRC prices by INR 1500/MT in Dec'18.