Posted on 05 Dec 2022
The Vietnamese hot rolled coil market continues to see Chinese export offer prices rise because of the robust rebound in Chinese domestic futures markets, Kallanish notes. However, the depressed Vietnamese market will continue to limit any strong price uptrend.
Chinese offers for 3-12mm thickness SS400 HRC for January shipment have moved up to $555-560/t cfr last week, and even as high as $565/t cfr on Friday. This is up from $545/t cfr during the 25 November week. Some Chinese and Vietnamese trading sources report hearing deals concluded at $540/t cfr during the week.
There could be buyers of Chinese HRC despite domestic prices hovering at around Chinese price levels, or the equivalent of around $540/t cfr. “These buyers expect that prices may go up in the future,” a Vietnamese trader says.
But another thinks that end users will still turn to domestic HRC since they prefer quicker shipments instead of waiting for about two months for fresh import orders to arrive. The Chinese HRC orders could be possible if shipment is prompt up to seven days, he says. Domestic HRC inventories are running down but vessels ferrying Chinese HRC are expected to arrive this month. Domestic mills in Vietnam are turning to export markets as well as cutting back on production in order to cope with slower sales at home.
The Vietnamese market is quieter for rerolling HRC. Offers for Chinese 2mm and up thickness SAE 1006 HRC offers are prevailing at $580-585/tonne cfr Vietnam, compared to $560-570/t the week before. But some small Chinese mills are offering at lower prices, to almost similar levels as SS400 grade, Vietnamese trading sources said. No import rerolling HRC deals are heard to have recently transacted.
Kallanish assessed imported SAE grade 2-2.7mm thickness HRC at $550/t cfr Vietnam, up $12.5 on-week.
Source:Kallanish
