Vietnam Mills Resume HRC Bookings as Chinese Offers Stabilizes

Vietnam's importers have resumed HRC bookings as Chinese prices look to have stabilized on limited supply and the strength of its domestic market also have stabilized.

Market participants indicated that Chinese offers - which fell to USD 565-575 per tonne CFR on last week - are now showing the signs of retreating. Current offers for the re-rollable grade (SAE1006) from China have increased to USD 585-595 per tonne CFR.

According to market participants, current offers from Xinyu (a Chinese mill) is at around USD 585 per tonne CFR, Rizhao steel is at around USD 590 per tonne and no firm offers from Benxi.

Indian offers are heard around USD 585-590 per tonne CFR through traders, but no deal was reported.

"A Vietnamese importer has booked around 20,000 MT HRC from China's Rizhao steel, last week. Chinese offers may not fall as exports from China continued to drop." said a local mill based in Ho Chi Minh city.

Another trader reported HRC offers from Korea's Hyundai steel at around USD 620 per tonne CFR.

Vietnam is one of the largest importers of steel in the world; country imports above 20 MnT of steel per annum, according to Vietnam Steel Association (VSA). Most of the trades are done on spot basis, where traders take the position and sell their cargoes based on spot prices.