Posted on 12 Mar 2020
Vietnam’s hot rolled coil market continues to slide, Kallanish notes. Negative sentiment and uncertainties over the global containment of the Covid-19 outbreak has sparked more exports from Asia.
On Wednesday, a 10,000-tonne cargo for 2mm base SAE 1006 HRC from Japan for May shipment is offered at $465/tonne cfr Vietnam. The day before, a leading reroller ordered 2-2.7mm thickness SAE 1006 HRC from India, also for May shipment and at $465/t cfr Vietnam. Indian trading sources say it is doubtful that the Indian mill sold at this level. Traders could be offering or booking without securing material from the mill, they say. "This could be the deed of some trader who is short-selling," an Indian trader says.
Last week, 2mm base thickness SAE 1006 HRC from a leading Japanese mill concluded as low as $470/t cfr Vietnam. Offers for SAE 1006 from this mill and another Japanese mill are prevailing at $470/t cfr, Vietnamese trading sources say Wednesday. “Bids for Japanese HRC are now at $460-463/t cfr,” a Ho Chi Minh trader says. A Chinese trader heard that Indian 2-2.7mm thickness HRC from another Indian mill is at $460/t cfr Vietnam but Kallanish is unable to confirm.
Another Vietnamese trader says that bidding is currently under $460/t cfr Vietnam. He pointed out to the large volume of HRC arrivals in January. Around 500,000t of HRC from India, Japan and China arrived, he said. Construction activity had tapered off in January because of the Lunar New Year, and with Covid-19 denting demand in February and this month, he estimates that these HRC cargoes could last for April/May production.
Chinese HRC is priced higher now, some Vietnamese traders note. Chinese traders are gearing themselves for a rebound in domestic demand when the Covid-19 spread subsides.
Source:Kallanish
