Posted on 07 Oct 2024
The Vietnamese hot rolled market awaited the return of China from its week-long holiday, Kallanish notes.
“There are no offers from China,” a Hanoi trader says.
Another Vietnamese trader notes exporters for other origins such as Japan and South Korea are also not offering. "Everyone is waiting for the Chinese to come back after Golden Week,” he observes.
Some market participants were monitoring to see if the local market will accept Hoa Phat’s domestic price hike of around $34/tonne for December deliveries.
The company's quotes for non-skin passed SAE1006 or SS400 grade HRC were set on 1 October at the equivalent of around $548/t cfr southern Vietnam, excluding VAT. The mill was expected to close its orderbook by Saturday.
The Vietnamese planned price hike could be too much for HRC buyers to accept as Vietnamese downstream exports are facing slow demand.
Vietnamese-origin coated and cold rolled steel exports have been targeted in retaliatory trade cases including in US and Mexico, a Vietnamese mill manager says.
Japanese SAE 1006 2mm up thickness HRC was last heard concluded at $495-500/t cfr early during the week through 27 September but was subsequently heard offered at $510/t cfr Vietnam the following week.
Just before China closed for its holiday, Chinese SAE 1006 HRC offers soared to $560-565/t cfr on 30 September, which traders say were unrealistic.
The price hike of $60-70/t over a week was one which no buyer will consider, they add.
SAE grade 2-2.7mm thickness HRC is assessed at $510-520/t cfr Vietnam, up $17.5/t.
Source:Kallanish
