Vietnam: Imported HRC prices fall further by $30/t in bearish market

Vietnam's imported HRC market witnessed a downward trend further this week due to bearish sentiments and dull demand amid rising Covid concerns. Offers from key suppliers have corrected by $20-30/tonne (t) compared to the beginning of this week.

Current week's offers:

• HRC (SAE 1006) offers from Indian mills are heard at around $755-760/t CFR Vietnam this week, down $25-30/t compared to $780-790/t CFR a week ago.
  
  
• An unconfirmed trade was heard concluded by for 20,000 t Indian origin HRC (SAE 1006) at around $755/t, CFR Vietnam.
  
  
• Chinese (tier 1) mills, on the other hand, are offering HRCs at around $795/t this week, lower by $20/t w-o-w.
  
  
• Russian mills continued offering at $760/t CFR Vietnam.
  
  

Majority of the local participants in Vietnam highlighted lower bids which has kept trade on the lower side. Buyers are bidding at around $750-755/t CFR, leading to a disparity between offers and bids. Therefore, no significant deals were heard to have been concluded.

Factors leading to a drop in offers

1. Rising Covid cases: Vietnam has by far gone through four waves of the coronavirus, resulting in a slowdown in domestic activities, specially in capital Hanoi. As on Saturday, 25 Dec'21, the country reported 15,586 new Covid-19 cases and since late April, 1.6 million locally transmitted Covid cases have been recorded, according to the Ministry of Health.

2. Previous bookings with domestic players: Vietnamese buyers have shifted their buying interest to locally produced material after a sharp decline in offers seen earlier this month. Vietnamese steel majors have reduced their prices for Feb'22 dispatches by up to $58/t. For instance, Formosa has lowered HRC prices by $58/t and Hoa Phat, by $35-40/t. Formosa is offering HRCs (SAE1006, skinpasses) at $825/t CIF, while Hoa Phat is offering at $795-800/t CIF (down $35-40/t) for Feb'22 delivery.