Posted on 22 Feb 2021
The Vietnamese import market for re-rolling hot rolled coil remained quiet last week, Kallanish understands. Importers are slowly returning after the Lunar New Year holiday which ended on 16 February. Market sentiment has improved due to the stronger Chinese domestic market.
Offers for 2-2.5mm thickness SAE 1006 HRC from China are heard at $720/tonne cfr Vietnam and for SAE 1006 2mm thickness coil from South Korea at $780/t cfr. Chinese mills are still asking for buyers to share the financial cost of any effective tax rebate reduction in new purchase contracts. This is in response to rumours that the Chinese government will be reducing the export tax rebate on HRC effective April.
Bids from Vietnamese importers are lower than offers, at $670-680/t cfr. “No mills are accepting this price level,” a local trader says. Low-priced position cargoes, which kept transaction prices low in recent weeks, appear to have been sold out and are no longer available. "Prices will not be under pressure anymore," he adds.
Traders report a 3,000-tonne deal for 3mm and up thickness SS400 hot rolled sheet from China concluded on 18 February at $670/t cfr Vietnam. It was a position cargo for shipment by early March. Buyers were purchasing SS400 HRC at $660/t cfr for March/April shipment from domestic producer Hoa Phat during the week ending 5 February.
An offer for 30,000t of SAE 1006 2mm and up thickness HRC from India was circulating last week at $710/t cfr Ho Chi Minh City. However, Vietnamese trading sources say the mill’s SAE 1006 quality may be more suitable for pipemaking applications. The offer is subject to re-confirmation from the mill. An Indian trader thinks the supplier is testing the market with the offer.
Kallanish assessed the import price for SAE 2-2.7mm thickness HRC on 19 February at $680-690/t cfr Ho Chi Minh City, up $20/t from 10 February.
Source:Kallanish
