Vietnamese HRC market drifts amid China's absence

Posted on 12 October 2020

The Vietnamese hot rolled coil import market was quiet during last week, Kallanish notes. Activity and offers were sparse because of the long Chinese holiday.

Some offers heard during the week were flat versus the previous week, while others were $5/tonne lower. SAE 1006 2mm and up thickness HRC from Kazakhstan was offered at $510/t cfr Vietnam and from a Russian mill at $505/t cfr.

Chinese trading sources warned on Friday that certain suppliers of Chinese HRC have hiked offers. “Prices are going up,” a Chinese trader says. He reports a trader’s offer for 2mm and up thickness SAE 1006 HRC at $523/t cfr Vietnam, as well as for 3.8-20mm thickness SS400 HRC at $515/t cfr Vietnam. These are for end-December shipment and for either Chinese, Indian or Korean origins.

Another says that a Chinese mill was offering SS400 3mm and up HRC at $525/t fob, equivalent to $535-540/t cfr Vietnam. Traders were offering SAE 1006 HRC from China at under $520/t cfr during the 25-September week.

An offer for 2-2.5mm thickness SAE 1006 HRC from a popular Chinese mill is prevailing at $520/t cfr compared to $510/t cfr before the holiday, Vietnamese trading sources say. SAE 1006 HRC from South Korea is offered at $540/t cfr, also $10/t higher from a week prior. “The market is still quiet,” a Vietnamese trader says. Buyers are unwilling to commit to any orders, but he expects market activity to return in the coming week.

On Friday, Kallanish maintained its 2-2.7mm SAE1006 HRC assessment at $510-520/t cfr Vietnam.

Source : Kallanish