Vietnam: Demand for imported HRC may soften on rising concerns over COVID

HRC importers based in Vietnam softened their bids because few cities namely Ho Chi Minh, Ha Noi, and Da Nang are practising social distancing from today onwards due to the spread of COVID-19, SteelMint learned from its sources based in Vietnam.

This may soften the demand for imported HRC to Vietnam from major exporting nations. However, offers for the imported HRC continue to remain same at the moment since importers had already actively booked cargoes for Aug-Sep shipments last week.

SteelMint reported that Indian steel mills collectively booked around 40,000 t HRC to Vietnam by the end of last week at $475/t CFR basis for end-Aug/early-Sep shipment. However Indian mills have further raised HRC export offers to Vietnam by $10/t and offering at $485/t CFR basis.

In addition to this, Japan's Nippon Steel, and South Korea's Hyundai Steel also lifted their HRC offers to Vietnam by $5/t and are offering at $480/t CFR against $475/t in the previous week. Meanwhile, Russia based MMK steel has resumed its HRC export offers to Vietnam for Aug-Sep shipments and offering at $465/t CFR basis.

However, impact of the pandemic may lead to a decline in imported HRC offers on limited buying at current levels.