Vietnam: Imported HRC offers from China rise w-o-w; outlook mixed

Offers for imported hot-rolled coil (HRC SAE1006) from China to Vietnam rose $15-20/t CFR to $575-580/t CFR from $565-570/t CFR the previous week. Prices rose amid a sharp increase in China's Shanghai Futures Exchange (SHFE) HRC futures.

Imported HRC offers:

• Chinese HRC (SAE1006) offers were heard at $575-580/t CFR, up $15-20/t w-o-w against $575-580/t CFR.
  
  
• No new offers were heard from Indian mills. Last offers were heard at around $580-585/t CFR.
  
  
• Offers from Japan were heard at $600/t CFR, though allocations were limited.
  
  
• No offers were heard from Taiwan, South Korea and Russia this week.
  
  

Rise in domestic HRC offers: Last week, Vietnam's Formosa Ha Tinh (FHS) further raised monthly HRC (SAE 1006, skin pass) prices for August by $10-15/t CIF m-o-m. Post revision, prices are in the range of $595-615/t CNF, depending on the quantity of purchase. The company has raised prices considering the hike in domestic prices.

Supportive global market sentiments: Not only domestic HRC prices but global offers, too, rose m-o-m. World's largest steelmaker, Baosteel, has raised hot-rolled coil (HRC) prices by RMB 100/t ($14/t) m-o-m for August sales. The company raised prices on in anticipation of improving demand from end-users, sources informed SteelMint. Moreover, Taiwan's China Steel Corp (CSC) raised HRC prices by TWD 300/t ($10/t).

Outlook

SHFE HRC futures (October contract) rose by RMB 40/t ($6/t) w-o-w to RMB 3,822/t ($533/t) today as against RMB 3,782/t ($528/t) last week. Moreover, Vietnam's steel imports rose by 14% m-o-m to 955,786 t in June. However, production cuts in China and summer holidays in Europe have kept market sentiments mixed.