Vietnam Mills Raise Bids For Imported HRC

SteelMint in conversation with market participants learned that Vietnam based end users have raised their bids for imported HRC following hike in offers. Current offers for positioned cargo of Indian HRC is assessed around USD 425-430/MT, CFR Vietnam.

Few market sources shared with SteelMint that some major Indian steel mills have withdrawn their existing HRC offers and may raise offers by USD 10/MT for Dec deliveries on the back of decent export bookings made earlier Diwali holidays. After the hike, it's expected that Indian HRC export offers will come around USD 440/MT CFR basis.

Vietnam's Formosa offering steep discounts over competitive pricing from India- Few market sources based in Vietnam shared that domestic integrated Formosa Ha Tinh is offering discounts of USD 25/MT on HRC (SAE1006 skin pass) at USD 435/MT CIF basis for Nov shipments. However, the offers for HRC stood around USD 460/MT CIF Ho Chi Minh for Nov shipments.

Current HRC offers to Vietnam-

1. HRC (SAE 1006) 2mm/Chinese offer- Benxi is offering at USD 445-450/MT CFR Vietnam.

2. HRC (SAE 1006) 2mm/Chinese offer- Shagang is offering at USD 440/MT.

3. HRC (SAE 1006) 2mm/ Japanese offer- Nippon Steel is offering at USD 440/MT CFR Vietnam. Previous week offer stood around USD 430 /MT CFR basis.

4. HRC (SAE 1006) 2mm/ South Korean offer- Hyundai Steel offers stand around USD 440/MT CFR basis. Previous week offers were around USD 425-430/MT CFR basis.

5. Last week confirmed trade deal heard, of around 50,000 MT of HRC booked by major mill directly for export to Vietnam at USD 422-425/MT CFR for Nov-end Dec shipments.

6. Confirmed trade deal heard by Japanese based Nippon steel of 80,000 MT HRC at USD 420/MT CFR Ho Chi Minh two weeks back for Nov- end Dec shipments.

7. Currently, no active offers from Russian based MMK steel for Nov- Dec shipments.

Chinese HRC export offers move up- Chinese HRC export offers remained largely stable on a weekly premise. Currently, the nation’s HRC export offers are hovering around USD 435-445/MT FoB China.

However, Chinese steel mills have shifted their focus to the domestic market amid lucrative margins ahead of the winter season. In the eastern China region, HRC prices stood at RMB 3,510-3,530, widening upwards by RMB 10/MT on a D-o-D basis and RMB 3,520/MT in Tangshan region.

CIS nations HRC export offers continue to remain downside- Offers from CIS nation’s remained downside owing to fewer trades. However, this week nation’s HRC export offers remained stable.

On a weekly premise CIS- origin HRC export offers stood at USD 360-375/MT FoB Black Sea remained unchanged compared to the previous week.