Posted on 05 Jun 2023
The Vietnamese hot rolled coil market paused on Friday as it watched the surge in Chinese steel futures, Kallanish notes. Offers were noticeably reduced and suppliers are waiting for stability before returning with expected higher quotes.
“Chinese futures prices are going up sharply; many traders have stopped offering,” a southern Vietnamese trader says. He last saw offers for Q236 HRC at around $530/tonne cfr on Thursday. Some deals for Q235/SS400/Q195 grade HRC from China transpired at $520-525/t cfr earlier in the week, he adds.
On Friday morning, Chinese-origin 3-12mm thickness HRC for end-July shipment was offered at $530/t cfr for Q235 grade and at $550/t cfr for Q355 grade, while 3mm base Q195/Q195L grade was at $525/t cfr. For 2-3mm thickness SAE 1006 HRC from a popular Chinese mill for shipment by early August, the offer was at $580/t cfr. “No one booked because the Chinese futures market increased too fast,” the Ho Chi Minh trader says. The offers are no longer available though, he adds.
Some traders say they are seeing Chinese offers for SAE 1006 HRC at $585-590/t cfr Vietnam. Kallanish assessed imported SAE grade 2-2.7mm thickness HRC at $570-575/t cfr Vietnam, up $5 on-week from the previous Friday.
Deals for SS400 and SAE 1006 grade HRC last took place on Wednesday at $518/t and $570/t respectively, cfr Ho Chi Minh City basis, another says. Around that time, an offer for Chinese SAE 1006 HRC comprising 60% 2mm thickness material was tabled at as low as $550/t cfr Vietnam. Rising Chinese futures are boosting market sentiment, a regional trader says. "Let's see if they can hold," he adds.
Meanwhile, Thailand has officially extended antidumping duties on HRC from Brazil, Iran and Türkiye for another five years effective 2 June. The Thai Ministry of Commerce had already determined and announced its findings in its April review (see Kallanish passim).
Source:Kallanish
