Imported Chinese-origin hot-rolled coils (HRCs) offers into Vietnam remain unchanged w-o-w this week as the market awaits price announcement from domestic mills. Chinese mills had increased their offers by $10/tonne (t) in the preceding week, as per SteelMint records.
Current offers-
- China: HRCs (SAE1006) were heard offered at $700-705/t, unchanged against last week. Offers for HRCs (SS400) still stand at around $690/t CFR.
- Indian mills are bidding their time to start quoting for April shipments on the higher side.
- Japanese and South Korean mills continue focusing on better opportunities in the US market.
- No offers from Russia were heard this week.
Buyers await Formosa’s May’23 domestic offers: Vietnamese buyers are on the side lines, awaiting price annoucements from domestic mills – Formosa Ha Tinh (FHS) and Hoa Phat – for May and early-June 2023. Last month, FHS had announced an increase of $59/t m-o-m in HRC (SAE1006, skinpassed) to $699/t CIF Ho Chi Minh City (HCMC) for April and early-May 2023 sales. The company had exhausted its supplies for the said period despite an increase in its prices, hinted local sources. Similarly, Hoa Phat had announced an increase in its HRC (SAE1006, non-skinpassed) prices to $683/t for April and early-May 2023 sales.
Outlook
Vietnam mills are likely to quote higher offers in the domestic market amid improved overseas market sentiments. On a monthly average basis, Chinese HRC (SAE1006) offers have increased by about $30/t m-o-m to $705/t CFR Vietnam so far in March 2023.
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