Posted on 22 Oct 2020
Exporters are still hiking offer prices for hot rolled coil into Vietnam, Kallanish notes. However, re-rollers are unwilling to chase after higher-priced material.
Offers for SAE 1006 HRC have been rising since the market plunged to recent lows last month. Russian 2mm and up thickness material, which was booked at $505-510/tonne cfr during the last two weeks, is now offered at $515-520/t cfr Vietnam. India-origin SAE 1006 HRC is currently offered at $540/t cfr, up from $530/t cfr last week. Kazakh SAE 1006 HRC was ordered at $510/t cfr Vietnam last week.
Re-rollers are bidding at $520/t cfr for December shipments and only $500/t cfr for Russian HRC, a local trader said on Wednesday. They are concerned that prices could fall when the cargoes arrive in January, he explains.
A Chinese trader says he was offering SAE 1006 HRC for January/February shipment at $540/t cfr on Tuesday but lowered offers to $530/t cfr on Wednesday because of slow demand. There could be a change though because the Chinese futures market jumped up on Wednesday, he adds. A 10,000-tonne cargo of 2mm thickness SAE 1006 HRC from a Tier 1 Chinese mill closed at $525-530/t cfr Vietnam last week.
However, SS400 grade HRC is more active in Vietnam. Deals for 3mm and up material concluded Tuesday at $520/t cfr. “The big buyers have begun to book,” the Chinese trader says. Chinese SS400 offers are prevailing at $520/t cfr Ho Chi Minh and $522/t cfr Haiphong. SS400 HRC is in shortage as inventories are very low, a local trader says. Last month, 4mm and up thickness SS400 HRC from China, due for November shipment, was ordered at $510/t cfr southern Vietnam.
Meanwhile, re-rollers in northern Vietnam are recently buying SAE 1006 HRC from a new producer at $530/t delivered. This price is similar to the other strip producer in Vietnam, which is offering at $525/t fob for December shipments. "Local transport fees are only $5/t," a trader notes.
Source:Kallanish
