Posted on 20 Jul 2022
Suppliers of Chinese hot rolled coil hiked export offer prices in Vietnam at the start of this week, in tandem with the rebound in Chinese steel futures, Kallanish notes. Demand in Vietnam, however, still remains very depressed.
Export offers of 3-12mm thickness Chinese-origin SS400 grade HRC for September shipment rose to $590/tonne cfr Vietnam this week, trading sources in China and Vietnam say. Offers hit lows of around $560/t cfr last Friday.
“Offers are around $585/t cfr, but bids are at $570/t cfr,” a Hanoi trader said on Tuesday.
There is market chatter that a small tonnage of Chinese SS400 HRC was recently ordered at $540/t cfr Vietnam. A Vietnamese trader hears the cargo booked comprised 3,000t. “There is a high possibility that some deals took place at $540-550/t cfr. Some traders confirmed this level,” another Vietnamese market source says.
But other market participants say this rumoured price is too low. “The lowest I heard offered was $550/t cfr Vietnam,” a Chinese trader says.
“I don’t think so,” responds a Vietnamese trader. “Chinese prices rose on Monday and there was nothing at such a low price on Friday. Another Vietnamese trader says that $560/t cfr was indicated on Friday but these offers were withdrawn later on.
Another Chinese trader says the low price of $540 is not possible. He received a bid at $565/t cfr Vietnam. “Some customers will bid lower and tell the market that it is a deal price,” he notes. “There is some weakness in steel futures now; maybe prices will come down again tomorrow."
Source:Kallanish
