Posted on 10 Oct 2022
The Vietnamese hot rolled coil import market moved sideways last week, Kallanish notes. The market was mostly quiet except for re-rollers returning to restock Japanese HRC.
Traders report that Japanese 1006 2mm and up thickness SAE 1006 HRC for December shipment was ordered early last week at $587/tonne cfr Vietnam. A Vietnamese trader regards the booking price as low for material from a Tier 1 Japanese mill.
Certain offers for Chinese SAE 1006 HRC were already at this level before China closed for its holiday. Another says many re-rollers booked at this level but he is unsure of the tonnage concluded. Chinese 2mm and up thickness SAE 1006 HRC was also heard offered at $575/t cfr Vietnam just before last week’s holiday.
Indian HRC offers are currently unavailable. "Their [Indian mills’] local prices are increasing," the first trader reports. Kallanish assessed SAE grade 2-2.7mm thickness HRC at $575-585/t cfr Vietnam, unchanged on-week. Chinese SS400 3-12mm thickness HRC was booked at $565-570/t cfr during the week ending 30 September, before the Chinese holiday.
ASEAN HRC mills continue to seek better-paying export markets outside of Asia. PT Krakatau Posco (KP) is offering hot rolled SPHC/SAE1006 base grade coil at $570/t fob and hot rolled SS400/ASTM A36 base plate at $720/t fob, say Jakarta-based market sources.
Posco Indonesia, which overseas Posco interests in Indonesia, including Krakatau Posco, is targeting to export S275 base HRC at $660/t cfr Europe, European traders say. Material from state-owned PT Krakatau Steel (PTKS) is offered at similar prices.
KP is offering HRC ahead of its gaining control of PTKS's 1.5 million tonnes/year No. 2 hot strip mill. “KP or Posco will be in charge for the HRC export market and PTKS will handle the domestic market,” a Jakarta-based trader says.
An agreement was announced in February whereby PTKS will increase its non-controlling share in the joint-venture with Posco from 30% to 50% through an injection of land and equipment (Kallanish passim). “The agreement is pending and likely to be settled this month,” says a PTKS source on the proposed handover.
Source:Kallanish
