Posted on 25 Apr 2023
The Vietnamese hot rolled coil market is feeling the brunt of continued weakness in Chinese steel futures, Kallanish notes. Traders are shorting the market by inviting bids at ever-lower prices. Chinese wire rod prices are also falling.
The price plunge is most felt in the commercial HRC segment, with values gravitating towards the $550/tonne cfr Vietnam mark. Offers for 3mm Q195 and Q235 for end-June/July shipment are at $565/t cfr, and for SS400 grade at $555-560/t cfr, trading and importing sources say. Last Friday, offers for Q195 HRC were at as low as $570-575/t cfr Vietnam. Other quotes were also reported then for Q195, Q235 and SS400 at around $580/t cfr.
But even lower offers are also being heard. Traders are seen inviting bids for June delivery of 3mm base Q195 and Q235 grades at $545/t cfr and for SS400 grade HRC at $550-555/t cfr.
For re-rolling SAE 1006 grade 2mm thickness HRC, bids from Vietnamese buyers are being invited at around $580-590/t cfr Vietnam from three small mills. The lowest prices heard last Friday from such mills were at $595-602/t cfr.
“Some traders are inviting bids based on the current futures prices,” a Chinese trader says. These are lower than for position HRC cargoes in the market now, he adds. Offers for SAE 1006 HRC from the larger Chinese mills are currently at $620-630/t cfr Vietnam, trading sources say.
Meanwhile, Chinese Q195 6.5mm diameter wire rod is offered at $555/t cfr Vietnam, down from $560/t cfr last Friday.
Source:Kallanish
