Posted on 15 Mar 2021
Vietnamese hot rolled coil users are quiet in the import market after domestic mill Formosa Ha Tinh recently announced its prices for April/Mary shipments. The mill's latest offers are competitive amid rising quotes from overseas suppliers, Kallanish notes.
On 10 March, Formosa announced its base SAE1006 HRC for April/May shipment at the equivalent of $765-770/tonne cfr Vietnam. Buyers will focus on buying from Formosa because its prices are reasonable, a local trader says.
Two deals for Indian SAE 1006 2mm and up thickness HRC were ordered at $748/t cfr and $750/t cfr Vietnam respectively just days ahead of Formosa’s price announcement. "Buyers had factored in that Formosa will hike prices," a regional trader says.
Traders and suppliers have since increased Indian SAE 1006 HRC offers for April/May shipment to $770/t cfr Vietnam. "I don’t think the local market can accept offers at $770/t cfr because Formosa’s price is lower," a Vietnamese mill manager says.
Chinese SAE 1006 HRC offers are sparse, some traders say. They pinpoint difficulties in securing vessels for shipments and continued increases in freight costs. Freight has soared to $30/t and even higher between China and Vietnam, compared to $20/t previously. "Cargoes for February/March shipments are delayed," a trader says.
While others say that Chinese SAE1006 2mm and up HRC offers are still available at $755-760/t cfr Vietnam, buying has been slow. Vietnamese buyers have been reluctant to book Chinese material because suppliers insist that buyers adhere in contracts to sharing the financial costs if the export rebate for HRC is reduced.
Kallanish assessed the import price for SAE 2-2.7mm thickness HRC on 12 March at $750/t cfr Ho Chi Minh City, up $5/t on-week.
Source:Kallanish
