Posted on 17 Jul 2023
The hot rolled coil import market has firmed in Vietnam on some acceptance of higher transaction prices, Kallanish notes. Domestic mills recently raised their monthly HRC prices by $10/tonne and this could have provided support to the market.
“Chinese prices are going up in recent days,” a trader in Ho Chi Minh City (HCMC) says. Several deals for Chinese 3mm thickness Q195/Q235 grade HRC for August shipment were struck on Thursday at $548/tonne cfr and mostly involved buyers in northern Vietnam.
At least 6,000-8,000 tonnes of bookings were made at this level to Haiphong, a Hanoi trader estimates. “Customers need more time to accept price increases,” he says of the modest volume of bookings. Previous orders for Q195/Q235 HRC for prompt shipment took place at around $535/t cfr on 7 July. However, suppliers have since raised their offers for Q195 grade HRC to $550/t cfr Vietnam, he adds.
Position cargoes of SAE 1006 2-2.5mm thickness HRC for August shipment from a popular Chinese mill are offered at $570-575/t cfr Vietnam. Some offers are for 5,000t and others for 10,000t, another HCMC trader says.
There was buying at $570/t cfr for these position lots on 13 July, a Chinese trader observes. As these offers were largely ignored before, he is optimistic that Vietnamese buying prices will hit $580/t cfr this coming week. He is bullish also for the commercial HRC segment.
Offers for Q195 HRC were higher, at $555-560/t cfr, on Friday and some suppliers have even withdrawn offers, he adds. A Vietnamese trader thinks buyers have raised their bid prices to around $570/t cfr for SAE 1006 HRC. But Chinese mills would be targeting to offer at $585/t cfr Vietnam.
Several Vietnamese traders say a leading Vietnamese stockist ordered a cargo of 2mm up thickness SAE 1006 HRC from a tier-1 Indian mill at $578/t cfr on around 6 July. The stockist acted on behalf of a leading Vietnamese re-roller.
Kallanish assessed SAE grade 2-2.7mm thickness HRC at $570/t cfr Vietnam, up $5 on-week.
Source:Kallanish
