Posted on 21 Mar 2023
The Vietnamese hot rolled coil import market has stabilised amid the weakening in Chinese prices and concerns that a brewing banking crisis could evolve into a global financial crisis. The market, which was rising since the second week of February, saw few trades last week, due to the tight liquidity and credit environment in the country, Kallanish notes.
Domestic producer Formosa Ha Tinh’s latest round of price hikes was not fully embraced by local buyers. While FHS’s prices are “quite high”, a Hanoi trader says that his subsidiary company booked 10,000 tonnes to sell cold rolled coil domestically. “The CRC market is recovering this month,” he notes. FHS pegged the April/May-shipment price for non-skin-passed SAE 1006 HRC at the equivalent of around $727/tonne cif Vietnam on 15 March.
Others think that buying is not widespread. “Some galvanised and pre-painted coil customers can accept FHS material since they still have export orders,” a Ho Chi Minh City (HCMC) trader says. But several Vietnamese mills are still facing weak domestic demand and can opt to use cheaper Chinese imported SAE 1006 HRC to produce CRC and pre-painted coil with thicker sizes. Their feed quality requirements are lower.
Offers for Chinese SAE 1006 HRC from the lower-tier mills for April shipment are prevailing at around $690/t cfr. An offer of 2.0-2.5mm thickness SAE 1006 HRC from either Angang, Chaoyang or Zhongtie for shipment by 10 April is seen by Kallanish at $687/t cfr Vietnam. The quantity offered from each mill is 10,000t. Tier 1 Chinese mills’ offers are heard higher, at a minimum of $690-700/t cfr Vietnam. Kallanish assessed imported SAE grade 2-2.7mm thickness HRC at $685/t cfr Vietnam, unchanged on-week.
An offer for 3mm up thickness Q195, Q195L and Q235 grade HRC for end-April delivery from China's Anfeng and Zongheng is heard at $652/t cfr Vietnam. Suppliers are also inviting bids at lower levels, including one seeking bids at $645/t cfr Vietnam for mid-April delivery of Q195 HRC from either Anfeng or Zongheng. Traders report not hearing of bids. “The Vietnamese market is just too weak currently,” another Hanoi trader notes.
Source:Kallanish
