Imported Chinese-origin hot-rolled coil (HRC) offers into Vietnam dropped w-o-w by $20-30/tonne (t).
Limited buying interest in imported HRCs in the Vietnamese market and fall in Chinese futures led to lower offers. In addition, market activities are slow to pick up in Vietnam, hence, buyers are mostly focused on domestic supplies, informed reliable sources.
Current week’s imported HRC offers:
- Chinese HRCs (SAE1006) were heard being offered at $660-670/t CFR, as against $680-700/t CFR seen at the beginning of last week. Offers for HRCs (SS400) stood at around $650/t CFR.
- Indian mills are not offering since they are getting higher domestic prices compared to export offers to Vietnam. Moreover, mills are focused on scouting the European export markets.
- Japanese mills are offering around $730/t CFR, after a long pause.
- Meanwhile, no offers were heard from Russia and South Korea this week.
The country’s finished steel production rose 21.91% m-o-m to 2.35 mnt in February. Similarly, steel sales volumes went up by 18.13% m-o-m to 2.08 mnt, as per monthly updates from the Vietnam Steel Association (VSA). However, sentiments have turned subdued in March.
Notably, China’s SHFE HRC futures contract for May 2023 delivery closed today at RMB 4,225/t ($614/t), down by RMB 80/t ($12) w-o-w.
Market sources opine that deals may remain limited amidst buyers seeking clarity on prices.
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