However, cheaper imported HRC offers from India and Russia to Vietnam continue to keep the buyers enticed, making it hard for Chinese traders to sell in the global market.
Meanwhile, better domestic market demand ahead of the winter season led Chinese mills to shift their focus to the domestic market. Also, few mills had cut production or have shifted focus to domestic market, so tight availability resulted in a slight uptick in offers.
Imported HRC offers to Vietnam stable amid limited trade- This week, imported HRC offers to Vietnam remain range-bound from major exporting nations. However, buyers based in Vietnam assume a wait-and-watch approach and continue to bid lower anticipating cheaper offers for imported HRC from major exporting nations.
Current HRC offers to Vietnam-
1. HRC (SAE 1006) 2-3mm/ Chinese offers- Rizhao steel is offering at USD 425/MT CFR Vietnam, unchanged over offers in the previous week.
2. HRC (SAE 1006) 2mm/ Japanese offer- Nippon Steel is offering at USD 430 /MT CFR Vietnam, stable over the previous week.
3. HRC (SAE 1006) 2mm/ Brazilian offer- ArcelorMittal is offering at USD 430/MT CFR basis.
4. HRC (SAE 1006) 2mm/ Indian offer- Indian steel mills offer at USD 415-418/MT CFR basis.
5. Formosa HRC (SAE 1006, skin pass) is priced at USD 460/MT CIF basis.
6. At the beginning of the previous week, a major Indian steel mill had booked position HRC cargo of around 20,000-30,000 MT via trader to Vietnam at around USD 410/MT CFR Vietnam for Nov shipment.
CIS HRC export offers continue to decline amid dull demand- This week, CIS HRC export offers declined further by USD 20/MT. Hence, low demand from major importing nations amid weak global market sentiments continue to keep CIS HRC export offers under pressure.
Thus, current HRC export offers from the CIS region stand at USD 360-375/MT FoB Black Sea, which was USD 380-395/MT FoB basis in the preceding week.