Vietnam: Imported HRC market subdued, mills may cut prices
Imported HRC offers into Vietnam continued their downward trajectory as buyers continued to seek cheaper material in the overseas markets, considering subdued domestic de...
Imported HRC offers into Vietnam continued their downward trajectory as buyers continued to seek cheaper material in the overseas markets, considering subdued domestic demand amidst Covid restrictions. A deal was heard to have been concluded for 30,000 tonnes (t) of Russian HRCs to Vietnam at $860-870/t CFR last week.
Offers from major exporting nations
1. Russian HRCs were heard to be quoted at $860-870/t CFR.
2. Offers from Chinese tier-III mills were heard at around $910/t CFR.
3. Indications from Indian mills were heard at around $890-900/t CFR, lower by $20/t w-o-w.
4. No firm offers were heard from Japan and South Korea this week.
Recently, the People's Committee of Ho Chi Minh City (HCMC) provided some relaxations to shipping companies to operate in the red zones under some restrictions. The stringent lockdown norms since July in HCMC have shown some positive outcomes lately. Although, fresh cases across the country are still above 12,000, the HCMC reported 4,957 new cases on 29 Aug'21. Earlier, the province was reporting a daily spike of over 5,000 new cases.
Imported HRC offers into Vietnam are likely to continue the current trend due to bearish sentiments in the market.
Market participants expect domestic players to slash offers: Vietnam-based market participants expect domestic mills like Formosa Ha Tinh and Hoa Phat to lower offers in the coming term.
"There are rumours that the leading mills in Vietnam may slash offers by $20-30/t in the next month. However, the final announcement is still awaited," said a local trader.
Vietnam's domestic integrated steelmaker, Formosa Ha Tinh (FHS), had cut its offers for HRCs by $15/t m-o-m for Oct'21 deliveries. The revised offers for HRC (skin passes) were at $955-960/t CIF Vietnam.
Vietnamese steel major Hoa Phat had reduced its prices for HRCs (SAE1006, skin passes) by $20/t for Oct'21 shipments. The effective prices after revision stand at $900-905/t CIF Vietnam.