Vietnamese traders expect cuts in domestic HRC prices

Posted on 08 September 2021

Vietnam’s local mills are expected to lower the monthly domestic prices of new hot rolled coil allocations, Vietnamese trading sources say. The expected price cuts are in tandem with the weak domestic and export markets, Kallanish notes.

The longer-established HRC producer in Vietnam could lower its prices for SAE 1006 HRC by $30/tonne to $920-930/t cfr for November shipments, a trader says. The mill is expected to make its official price announcement next week. The other producer of HRC in Vietnam could lower its prices to $880/t cfr, another trader says.

Two weeks ago, traders reported that the mill’s October-shipment prices were at $900-905/t cfr. Strict Covid-19 curbs enforced in the country have led to a plunge in domestic steel demand.

“The export market is not good now,” the second trader says. Vietnamese mills are also facing freight issues, including labour shortages and fewer vessels plying to Vietnam, especially to Haiphong. “Many vessels are facing delays at ports in China and the EU,” he adds. Vessels from Vietnam arriving in China are required to be placed under quarantine for 14 days. Freight rates between the two countries have subsequently risen sharply.

Source : Kallanish