Posted on 02 Oct 2023
The Vietnamese hot rolled coil market was quiet at the end of last week, Kallanish notes. Suppliers were less active on account of the long holiday in China.
Earlier in the week, many buyers resumed purchases of commercial grade hot rolled coil. They ordered Q235 and mostly Q195 grade 3mm base thickness HRC from China at $530-535/tonne cfr Vietnam on Monday-Wednesday.
Buyers of the end-October/November cargoes were from all over the country, including northern and southern Vietnam, a southern Vietnam trader reports. He estimates the recent orders totalled around 120,000 tonnes. Offers for Q195/Q235 HRC were prevailing at $537-540/t cfr after the buying spree.
However, the import market for re-rolling HRC was quieter. Limited offers from China are heard by Vietnamese traders. A Chinese mill’s offer for 2-2.5mm thickness SAE 1006 HRC was at $570/t cfr. There was also an offer for a less popular mill’s SAE 1006 HRC at $565/t cfr but this is for 30% 2mm thickness of the total cargo. Chinese mills typically offer 50% 2mm thickness HRC.
Vietnamese buyers are choosing to buy SAE 1006 grade HRC from local mills, Formosa Ha Tinh and Hoa Phat, because the cost of imported material has risen on the back of a stronger dollar. “Chinese HRC is significantly more expensive in VND due to the exchange rate,” another trader notes. The USD has strengthened by roughly 2% against the dong within a month. "That's a lot," a Vietnamese mill manager notes. Kallanish assessed SAE grade 2-2.7mm thickness HRC at $565-570/t cfr Vietnam, unchanged on-week.
Source:Kallanish
