Posted on 21 Sep 2020
Chinese hot rolled coil is competitive again in Vietnam, Kallanish notes. China’s return to Vietnam, amid a weakened Chinese domestic market, also marks a downturn of the Vietnamese import market after weeks of continued price hikes.
Offers for SAE 1006 from China for November shipment have come down. Offers for 2-2.5mm thickness HRC are prevailing at $535/t cfr Vietnam from a popular Chinese mill and at $525/t cfr from two less popular Chinese mills. These offers are back-to-back offers from the mills, a local trader says.
Offers for 2mm thickness SAE 1006 HRC from South Korea and Japan are prevailing at $545/t cfr Vietnam. There are no deals in Vietnam because the Chinese market is falling, a Vietnamese trader says.
“Traders are shorting the market,” a regional trader says. Traders were seen inviting bids for Chinese material at attractive levels on Thursday. Chinese traders were asking buyers to bid 3-12mm thickness SS400/Q235 HRC, for middle December shipment, at $515-520/t cfr Ho Chi Minh, and even as low as $510/t cfr. These traders were seeking bids at $510/t cfr for end-December or January shipment cargoes. The bids are, however, subject to reconfirmation, Kallanish understands.
On Friday, Kallanish lowered its 2-2.7mm SAE1006 HRC assessment to $525-530/t cfr Vietnam, down $5 on week.
Source:Kallanish
