Prices are falling in the hot rolled coil market in Vietnam. This situation causes sellers to have to reduce prices to liquidate their stocks and buyers to demand lower prices.
There is uncertainty about the future of the market. Sellers and buyers do not know how much prices will drop and how this will affect the market. Some experts predict that prices will drop further, leading to consolidation in the market. Other experts think that prices will stabilize and the market will return to normal.
Offers from China for SAE 1006 HRC with a thickness of 2 mm and above are currently hovering around $570/ton cfr Vietnam. But lower prices are also available for stock lots. For example, a well-known Vietnamese stockist is known to offer China-origin SAE 1006 HRC stock cargoes at $558/t cfr Ho Chi Minh City.
Formosa Ha Tinh has reduced its new monthly list prices for SAE 1006 HRC to $593-600/t cfr Vietnam in order to increase demand. These prices are slightly lower than previous prices.
However, the market finds these new prices of Formosa Ha Tinh high and buyers do not want to order at these prices. Sources say they expect Formosa Ha Tinh to reduce its prices to meet demand
The Chinese hot rolled coil market has also been quite stagnant lately. According to a Vietnamese trader, the market is almost quiet and there has been very little trading lately. Last week only small tonnage 3-12 mm thick Q235B HRC was booked for May shipment at $520/t cfr Vietnam.
SAE quality 2-2.7 mm thick hot rolled coil was valued at $565-570/ton cfr Vietnam, with a decrease of $10 on the week.
Comments
No comment yet.