Posted on 12 Dec 2022
The Vietnamese hot rolled coil market continues to see price gains spurred by a strong Chinese steel market rebound, Kallanish notes. Prices from all mills are heading upwards quickly and buyers are accepting moderate price increases.
A booking for 60,000 tonnes of SAE 1006 2mm up thickness HRC for January shipment from a Tier I Indian mill was made at $560/tonne cfr Ho Chi Minh City (HCMC) during the week ending 2 December. This has reaffirmed that the re-rolling segment has improved in Vietnam. A trader is heard to have made the booking for a leading Vietnamese re-roller. The Indian mill has consequently raised the offer price for its SAE 1006 HRC for February shipment to $600/t cfr.
Chinese export offer prices have been rising sharply too. Chinese SAE 1006 HRC for February shipment is now offered at around $600/t cfr HCMC. Bookings will soon reach $600/t levels because there is no cheaper material available, a Chinese trader says. He expects that Chinese HRC offers will likely be “refreshed” to reflect higher prices next week.
Re-rolling HRC is still attracting fewer bids in Vietnam because demand remains weaker compared to SS400 HRC. But it is better now, the trader adds. Bids for SAE 1006 HRC are now prevailing at $580-585/t cfr, a HCMC trader says.
Chinese 3-12mm thickness SS400 HRC is being offered at around $590/t cfr and bids are around $580/t cfr, Vietnamese trading sources say. "Prices rose sharply this afternoon," a trader said on Friday. A Chinese trader says he is offering material at $600/t cfr but he has no real intention to sell. Offers were at $555-560/t cfr during the week ending 2 December.
However, some regional trading sources do not think the Chinese steel market will continue to rise strongly. “There is too much froth,” one trader says. Demand in China is not strong, and the Lunar New Year and accompanying break next month will slow demand further, he adds.
Kallanish assessed imported SAE grade 2-2.7mm thickness HRC at $560-565/t cfr Vietnam, up $12.5 on-week.
Source:Kallanish
