Vietnamese HRC importers inactive in purchasing
2016-09-02 08:52:05 [Print]
BEIJING (Asian Metal) 2 Sep 16 - As HRC export prices from mills in China, where 60% of Vietnamese HRC are imported, showed signs of falling back this week after the total markup of USD30/t in recent one month, currently lots of Vietnamese importers are cautious about placing orders, waiting for a further price decline. Mainstream import prices for SS400 2.0mm*1,250mm*C and SS400 4.0-12.0mm*1,250mm*C from mills in China are USD425/t and USD405/t CFR Vietnam, down by USD5/t over last Friday. Insiders do not think the import market performance will make any progress in the short term.
An importer in Ho Chi Minh claimed prices for SS400 2.0mm*1,250mm*C and SS400 3.0mm*1,250mm*C from Chinese Benxi Steel are USD425/t and USD410/t CFR HCM respectively, both decreased by USD5/t over last Friday. With ideal prices USD20/t lower than current ones, the source postpones his purchasing plans, and prefers to import from Taiwan, South Korea and Japan rather than China for high qualities.
Noted by him, HRC prices from China for both domestic selling and exports were powerless to keep rising and fell back slightly recently, which heightened overseas importers’ cautious attitudes. “HRC export prices from China showed a strong upward trend in past four weeks boosted by the country’s steel production capacity cut policy, and we do not believe they will continue to rise in coming several weeks dragged by the insufficient demand, so it is risky to purchase at the current high prices,” explained the source, with zero stock at hand. In the meantime, he stated that the HRC market in Vietnam is rather steady for the moment, coupled with participants’ wait-and-see attitudes. “Prices for HRC should go down in July-August traditionally influenced by the unsatisfactory market performance, but they rose by VND500,000/t (USD22/t) this year stimulated by price soar in China, despite the dull market,” added the source. With the projected monthly trading volume of 20,000t per month, he sold 10,000t totally last month, and there has been no firm order received this week to date.
Revealing a cautious attitude about replenishing the inventory, another importer in Binh Duong told Asian Metal that the price for SS400 4.0mm*1,250mm*C from Chinese Yanshan Steel is USD405/t CFR Haiphong, declined by USD5/t compared with last Friday. Holding a stock of 15,000t at hand against the highest level of 21,000t in March-April, the source pointed out that most local importers like him are inactive in purchasing now, for fear of another price decline.
With the ideal price of USD400/t CFR Haiphong for the above grade, the source disclosed that not being confident of the market outlook, he reduced import amounts recently. He only ordered 4,500t of HRC from Nanjing Steel at the price of USD405/t this week, while his minimum order volume was 5,000t in the past. “It seems that Chinese HRC producers are also uncertain about the market outlook, and some mills hold back export offers temporarily,” he added. Meanwhile, the source stated that HRC traders in Vietnam are eager to lift prices, and the current price for the above grade has soared to VND10,300,000/t (USD462/t) from that of VND9,800,000/t (USD439/t) early last week, but the market remains tranquil. With the sales volume of 1,000t in recent one week, 1/4 of the projected level, the source sold 8,000t totally last month.
An importer in Ho Chi Minh claimed prices for SS400 2.0mm*1,250mm*C and SS400 3.0mm*1,250mm*C from Chinese Benxi Steel are USD425/t and USD410/t CFR HCM respectively, both decreased by USD5/t over last Friday. With ideal prices USD20/t lower than current ones, the source postpones his purchasing plans, and prefers to import from Taiwan, South Korea and Japan rather than China for high qualities.
Noted by him, HRC prices from China for both domestic selling and exports were powerless to keep rising and fell back slightly recently, which heightened overseas importers’ cautious attitudes. “HRC export prices from China showed a strong upward trend in past four weeks boosted by the country’s steel production capacity cut policy, and we do not believe they will continue to rise in coming several weeks dragged by the insufficient demand, so it is risky to purchase at the current high prices,” explained the source, with zero stock at hand. In the meantime, he stated that the HRC market in Vietnam is rather steady for the moment, coupled with participants’ wait-and-see attitudes. “Prices for HRC should go down in July-August traditionally influenced by the unsatisfactory market performance, but they rose by VND500,000/t (USD22/t) this year stimulated by price soar in China, despite the dull market,” added the source. With the projected monthly trading volume of 20,000t per month, he sold 10,000t totally last month, and there has been no firm order received this week to date.
Revealing a cautious attitude about replenishing the inventory, another importer in Binh Duong told Asian Metal that the price for SS400 4.0mm*1,250mm*C from Chinese Yanshan Steel is USD405/t CFR Haiphong, declined by USD5/t compared with last Friday. Holding a stock of 15,000t at hand against the highest level of 21,000t in March-April, the source pointed out that most local importers like him are inactive in purchasing now, for fear of another price decline.
With the ideal price of USD400/t CFR Haiphong for the above grade, the source disclosed that not being confident of the market outlook, he reduced import amounts recently. He only ordered 4,500t of HRC from Nanjing Steel at the price of USD405/t this week, while his minimum order volume was 5,000t in the past. “It seems that Chinese HRC producers are also uncertain about the market outlook, and some mills hold back export offers temporarily,” he added. Meanwhile, the source stated that HRC traders in Vietnam are eager to lift prices, and the current price for the above grade has soared to VND10,300,000/t (USD462/t) from that of VND9,800,000/t (USD439/t) early last week, but the market remains tranquil. With the sales volume of 1,000t in recent one week, 1/4 of the projected level, the source sold 8,000t totally last month.
