Vietnam: Imported HRC offers range-bound as domestic mills cut prices

The Vietnamese imported HRC offers have remained range-bound this week after domestic players reduced their prices for Mar'22 delivery by around $65-75/t in the middle of the previous week.

• Formosa Ha Tinh is offering HRC (SAE1006, skinpass) at $745-750/t CIF basis for Mar'22 dispatches, down from $820-825/t CIF for Feb'22 deliveries.
  
  
• Hoa Phat has also reduced Mar'22 delivery HRC prices to $732-736/t CIF from $795-800/t CIF for Feb'22 sales.
  
  

Current week's imported HRC offers

• Indian HRC offers are heard at around $750/t CFR. Indian mills were heard to have booked around 80,000 t of HRC last week at similar price levels.
  
  
• Chinese offers are hovering at around $790-795/t CFR.
  
  
• Japanese offers are heard at around $805/t CFR.
  
  
• Bids were heard at around $740-750/t CFR.
  
  

Higher preference for domestic HRCs: Vietnamese buyers are still giving higher preference to domestically produced HRCs over imported ones. Longer lead times for imported HRCs along with concerns around higher ocean freight amid vessel and container shortages are the prime reasons, SteelMint understands. Also, concerns around rising Covid cases across the globe are weighing on market sentiments.

Limited options for imported HRCs: Buyers are also wary of the presence of fewer exporting countries in the market. China and India have remained the most active participants over the past four months with Russia and Japan remaining inconsistent about offers.

Outlook:
The overseas trade is likely to slow down with Chinese and Vietnamese participants exiting the market early ahead of the Lunar New Year festival and Tet holidays beginning from 1 Feb'22. This might keep imported HRC prices range-bound.