Posted on 19 Apr 2021
Hot rolled coil prices continue to shoot up in Vietnam despite the release of fresh offers from domestic mills. Users are giving in to higher prices because market supply is tight, Kallanish understands.
On 15 April, 5,000 tonnes of 100% 2mm thickness P&O HRC from a Tier 1 Chinese mill was booked at $1,020/tonne cfr Haiphong, Vietnamese trading sources report. This would be equivalent to $1,000/t cfr for 100% 2mm SAE 1006 HRC. The same Chinese mill has been active in the Vietnamese market recently. It sold two 20,000t June-shipment orders for 100% 2mm SAE 1006 HRC at $960/t cfr during the week through 16 April, and at $940/t cfr the week before.
Last week domestic mills released June-shipment offers to the market at prices deemed reasonable or even cheap relative to imports. Formosa’s non-skin-passed SAE 1006 HRC is priced at $910/t cfr Ho Chi Minh City, while Hoa Phat’s offer for SAE 1006/SS400 is at $901/t cfr.
A 20,000t Indian SAE 1006 2mm and up thickness HRC cargo was ordered at $930/t cfr Ho Chi Minh City during the week. This involved a resale of a local trader's June-shipment position cargo to a leading re-roller.
There are not many Indian bookings because Indian offers are now at $950/t cfr, a regional trader notes. Chinese offers for SAE 1006 2mm up thickness HRC also jumped up during the week. A mill's offer was tagged on Friday at $960/t cfr Vietnam and another mill's June-shipment quote is at $940/t cfr. Chinese offers were previously heard at $910-920/t cfr Vietnam.
“Supply is getting tighter and tighter,” a Vietnamese trader says. "The market is hot," another local trader says. Domestic production is insufficient, he notes. HRC demand is usually around 800,000 t/month, but is now likely around 500,000-600,000t because of the pandemic. However, he estimates that the two Vietnamese producers are selling around 370,000 t/m combined.
Kallanish assessed the import price for SAE 2-2.7mm thickness HRC on 16 April at $930-935/t cfr Ho Chi Minh City, up $27.5 on-week, and up $90 from two weeks ago.
Source:Kallanish
