Posted on 15 May 2023
The hot rolled coil market continues to be weak in Vietnam, Kallanish notes. Certain traders were trying to boost prices higher after the strong uptick in Chinese steel futures. But Vietnamese buyers are unwilling to yield to any price hikes.
Offers for 2mm up thickness SAE 1006 HRC from the popular Chinese mills were down to $600-603/tonne cfr Vietnam on Friday, from around $610/t cfr just the day before, Vietnamese trading sources say. Offers from a certain small Chinese mill are now offered at $580-585/t cfr.
SAE 1006 HRC of 2-3mm thickness from Tangshan, for end-June/early-July shipment, is offered at $575/t cfr Vietnam, a Chinese trader said on Friday. These are short positions, a trader in Shanghai observes. “There is no room in the market for back-to-back offers in fact,” he explains. Kallanish assessed imported SAE grade 2-2.7mm thickness HRC at $575-580/t cfr Vietnam, down $7.5 from the previous Friday.
There seems to be more trading activity for commercial grade HRC. Traders report 3-12mm SS400 HRC booked in southern Vietnam at $544-545/t cfr on 11 May. There was a 2,000-tonne order for a June-shipment lot at $544/t cfr Ho Chi Minh City (HCMC), a HCMC trader says. Another HCMC trader also reports hearing of deals. He received Q235 offers at $550/t cfr and bids at $540/t cfr.
“The market is quite slow,” a Hanoi trader says. He does not hear of deals because customers are giving too-low bids. “We cannot match the gap of $15-20/t,” he adds. Offers for SS400/Q195 HRC from China were at $540-545/t cfr on Friday.
"Prices keep decreasing," a Vietnamese mill manager comments. He cites offers for Q195 at around $550/t cfr. There are some ongoing bookings by end-users who need to restock. "They just book what they really need," he notes.
Source:Kallanish