[SMM Steel] Vietnam HRC Prices Ease as Buyer Bids Stay Low

Iron ore futures traded firmer today. The DCE most-active contract I2701 settled at RMB 734.5/mt, up 1.17% from the previous trading day. Spot prices at Qingdao Port rose by an average of RMB 1-9/mt. Traders were only moderately active in offering, while mills were largely on the sidelines, leaving overall spot trading activity subdued.

This week, mines and beneficiation plants in the Shandong region quoted 820 for 64-grade alkaline powder on a dry basis, before tax, with acceptance payment at the mine, up 10. Steel mills raised prices in tandem. Most miners are producing normally, with a few undergoing routine monthly maintenance. Hebei steel mills showed moderate purchasing interest. Mines and beneficiation plants held no inventory, and small plants and traders shipped against scheduled orders. This week, regional resources were tight.

[Vietnam] Imported HRC offers in Vietnam strengthened following a fire incident at a major domestic steel complex, which raised expectations of tighter near-term supply. Offers for Indonesian-origin SAE1006 HRC increased to approximately USD 548–558/tonne CFR Vietnam, while the ASEAN HRC assessment rose by USD 8/tonne to USD 535/tonne CFR Vietnam. Another major Vietnamese producer was also expected to raise its selling prices and reduce allocations. However, buyers remained cautious toward the higher offers, and market acceptance has yet to be fully tested.