Most buyers in the VietnameseHRCmarket have been cautious this week with only rare deals for ex-China coils done. The prices in these contracts have indicated some slight increase, but still remain the lowest in the market and much below the previous local prices inVietnam. End-users are waiting for the next move from domestic mills soon before increasing import bookings.
A deal for 20,000 mt of ex-China SAE1006 was signed by a trader at around $815/mt CFR or $780/mt FOB for February shipment on Thursday this week. This price is $10/mt above a position cargo sold last week. For major January shipmentHRCfrom small mills, the tradable price is still around $825/mt CFR or so. Buyers have been bidding at $810-815/mt CFR, but the number of inquiries has been limited.
“The market is uncertain and Vietnamese buyers are waiting for the next movements from local mills... Formosa might release a new price next week, I think there will be a drop of $20/mt,” a local trader said, adding that this week deals for re-rolling gradeHRChave been very rare and only some small contracts for pipes have been done.
The latest offers for ex-Japan thinHRChave been at $840-850/mt CFR, but no significant booking has been reported even after such a visible price cut from the previous level of $890/mt CFR.
Indian mills have been cautious, with most of the mills still offering at not below $850/mt CFR. Even the deal last week at $835/mt CFR reported earlier as an exception has been assessed as “good” for the seller.
“Next week will be a sensitive time to see if the price will decrease,” a source said.
The SteelOrbis reference price for imported SAE1006HRChas been stable compared to last week, at $815-835/mt CFR.