Posted on 03 Mar 2021
The return of Indian hot rolled coil in Vietnam has generated some interest in the region, Kallanish notes. Indian HRC is competitive when available. It was noticeably absent for some months because India’s domestic market has been strong.
Trading sources report bookings of Indian HRC in Vietnam last week. An order for 30,000 tonnes of 2-2.3mm thickness SAE 1006 HRC for early-April shipment from an Indian Tier 1 mill took place on 24 February at $735-740/tonne cfr Vietnam. A 30,000t April-shipment cargo for 2mm up thickness SAE 1006 HRC from another Indian mill also took place last week at $735/t cfr.
"Domestic demand is still decent in India, so these low numbers in Vietnam are surprising," an Indian trader says. The depreciation of the rupee last week could have made exports more favourable, another says. The rupee has weakened against the dollar due to higher US interest rates, in line with other Asian currencies.
The second Indian mill has now raised its offer to $750/t cfr Vietnam, Vietnamese traders reported on Tuesday. An offer from a less popular Indian mill is prevailing at $730/t cfr. Indian mill offers in Vietnam this week are for shipment by end-April.
A popular Chinese mill’s offers for April-shipment SAE 1006 HRC are sold out and it is now offering May-shipment cargoes at $750/t cfr. Another Chinese mill is offering end-April-shipment HRC at $740/t cfr, while a Tier 1 Chinese mill's offer for 2mm SAE 1006 HRC is at $770/t cfr Vietnam. A Taiwanese mill’s offer is pegged at $780/t cfr Vietnam.
Bids have generally risen to around $730/t cfr for end-April shipment, compared to $710-715/t cfr last Friday, a Vietnamese trader says. The cargoes were booked at higher prices last week because buyers needed prompt material, he adds.
Source:Kallanish
