Imported HRC offers into Vietnam from Russia have come down this week by $20-40/tonne (t) from the previous levels of $870-890/t CFR basis.
Deal reported: A deal of 100,000 t of Russian HRCs was heard during mid-week. The deal got closed at $850/t CFR for Dec’21 shipment. But it may be mentioned, in the previous week, offers floated were higher at $870-890/t CFR levels.
However, the market was relatively quiet this week as Chinese tier-I mills still remain mute, while India mills are rolling over their previous week’s offer levels.
Offers from major exporting nations:
1. Chinese tier-III mills’ offers were heard at around $900/t CFR basis.
2. Indian mills continued offering at around $890/t CFR basis. However, bids were heard at around $870/t CFR levels.
3. No firm offers were heard from Japanese and Korean mills today.
Recap of Sept’21
a) Domestic mills reduce prices for Oct-Nov’21 deliveries: Buyers in Vietnam had kept their focus on domestic procurement till mid-Sept’21 when exporters started offering below the domestic price levels.
Revised HRC offers for Oct-Nov’21 deliveries from Formosa stand at around $925-930/t CIF Vietnam, while those from Hoa Phat are at $900/t CIF.
b) HCMC plans for phased re-opening of markets: The People’s Committee of Ho Chi Minh City (HCMC) had eased Covid curbs for shipping companies at the beginning of September. However, a surge in Covid-19 cases later led to the extension of the lockdown till end-Sept’21. Post-which, the committee formulated a plan of the phased reopening of markets, expediting the vaccination drive in the city.
c) India and Russia only active exporters: Russian HRCs gained more preference since the beginning of Aug’21 with mills keeping their offers competitive against those of others. Also, Indian mills were able to close a sizeable deal of 60,000-65,000 t of HRCs at $890/t CFR basis by mid-Sept’21 when the offers from both countries came at par.
d) Limited offers heard from China: Steel mills in China remained inconsistent in quoting offers during the month over various concerns. The delay in the expected export tax announcement, falling output over production curbs and an increase in Covid-19 cases at the beginning of the month weighed on export market activities.
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