Posted on 01 Mar 2021
The Vietnamese import market for re-rolling hot rolled coil has climbed higher amid strong market sentiment, Kallanish understands. Buyers are giving in to higher prices because they perceive a tight market situation.
A Vietnamese stockist ordered 10,000 tonnes of Chinese 2-2.5mm thickness SAE 1006 HRC for early-April shipment at $715/tonne cfr on 23 February, Vietnamese trading sources say. The same Chinese mill's offer for end-April shipments is tagged at $730/t cfr Vietnam.
A Chinese Tier 1 mill's offer for 2mm thickness SAE 1006 HRC is prevailing at $770/t cfr Vietnam. Offers for similar grade and thickness HRC from Taiwan and South Korea are at $780/t cfr and $790/t cfr respectively.
Two Vietnamese re-rollers are heard to have booked 30,000t of 2-2.3mm thickness SAE 1006 HRC from an Indian Tier 1 mill at $735-740/t cfr around 23 February. Current offers for Indian cargoes are due for shipment in early April.
"Buyers are willing to pay more for early-April shipments because re-rolling HRC supply is tight," a local trader says. Vietnamese buyers are bidding for back-to-back Chinese cargoes for end-April shipments at $710-715/t cfr, he adds. Bids a week earlier were much lower at $670-680/t cfr Vietnam.
While a Chinese trader says he is unaware of specific re-rolling HRC deals, he notes that Vietnamese buyers are now ready to consider placing HRC orders. Kallanish assessed the import price for SAE 2-2.7mm thickness HRC on 26 February at $715-725/t cfr Ho Chi Minh City, up $35/t on-week.
Source:Kallanish
