Vietnam: Imported HRC prices from India drop by $30/t in recent deal

Vietnamese HRC market has been witnessing much of a decline in offers from major exporting nations lately. Indian, Chinese and Russian mills have been heard reducing offers to entice buyers, with a few deals being heard. However, trade sources do not foresee a strong buying appetite at current offers.

Deals reported:

a) An Indian private steel major was heard to have booked 20,000-30,000 t of hot rolled coils (HRCs) (SAE1006) for exports at $790/t CFR Vietnam levels recently. The price is lower by $30/t w-o-w as offers were heard at $820/t CFR last week. However, a few other mills are still heard to be offering around $810/t CFR.

b) A small parcel of Chinese HRC (SS400) was heard to be booked for export at $760-770/tonne (t) CFR Vietnam for Jan’22 shipment. However, offers from Tier 1 mills continue to hover around $810/t CFR.

c) Russian mills continued offering at $760/t CFR.

Continual decline in imported HRC offers: Indian mills have been on the front foot in the past couple of weeks and have continued to reduce their export offers. Where the mills were offering around $840/t CFR basis a couple of weeks back, an export deal was concluded at $790/t CFR levels recently.

Likewise, Chinese mills have also come along reducing their export offers on the seasonally slow winter impacting domestic market activities. However, the mills had maintained their offers at $810/t CFR in the past couple of weeks.

Buyers awaiting price revision from domestic players: Vietnamese buyers are expecting the HRC prices for Feb’22 to be announced in the next couple of days. Meanwhile, buyers had kept their preference high for the domestic products until the second week of Dec’21. Furthermore, market participants are expecting Formosa and Hoa Phat to announce prices that are competitive against the exporting countries. Last month Hoa Phat had reduced HRC prices by $57/t for Jan’22 dispatches and offers for HRC (SAE 1006, skinpass) were at $835/t CIF Ho Chi Minh basis.

It is likely that domestic HRC prices may see a correction and, following that, trade may resume depending on price competitiveness in the domestic and imported HRC market.