Posted on 16 Jan 2023
The Vietnamese hot rolled coil market continues to see price gains on prospects of a strong rebound in Chinese steel demand post-Lunar New Year. Chinese suppliers are now withdrawing from the market in preparation for this holiday, Kallanish notes.
A flurry of buying activity saw Chinese 3-12mm HRC transacted at $620-623/t cfr Vietnam and for Q195 grade HRC at $617-620/t cfr. Offers for SS400 and Q195 grade HRC rose subsequently to at least $630/t cfr and $625/t cfr respectively, Vietnamese trading sources say. “Many traders stopped offering today; the remaining offers today are at $635/t cfr,” a Ho Chi Minh City (HCMC) trader said on Friday. Bookings for Chinese SAE 1006 HRC settled at $615-620/t cfr Vietnam during the first week of January.
Most Chinese trading companies will work their last day for the current lunar calendar year on 13 January, a Chinese trader says. He reports Chinese 2mm upwards SAE 1006 HRC offers were at $655/t cfr Vietnam during the week. "Most Chinese mills have stopped offering March-shipment material because they have run out of allocations. They will come back after the Lunar New Year with April shipment and higher prices,” another HCMC trader says. Chinese export prices are also rising on the back of an appreciating renminbi, Chinese traders note.
Meanwhile, Vietnamese producer Formosa Ha Tinh Steel has sold out its domestic allocations of HRC for March shipment after releasing them to the market on 8 January. Its domestic price for non-skin-passed SAE 1006 HRC was set at $635/t cfr HCMC. “There was no discounting this time, because Formosa’s prices are better than imported prices,” the second HCMC trader observes. The mill’s total monthly domestic and export allocations amount to 380,000t but it is unclear what the breakdown is for this round.
Offers for SAE 1006 HRC from two Taiwanese mills are prevailing at $660/t cfr Vietnam. An Indian mill’s offer was also heard at the same level on Thursday. Indian mills are seeking to export now at $670-680/t fob, so it could be from a supplier trying to induce a bid, a regional trader says.
Kallanish assessed imported SAE grade 2-2.7mm thickness HRC at $635/t cfr Vietnam, up $20 on-week.
Source:Kallanish
