Posted on 04 Dec 2023
Vietnam's Hoa Phat Dung Quat has sharply raised list prices for its domestic hot rolled coil sales due for delivery in March, Kallanish notes.
The quotes for non-skin passed SAE1006 or SS400 grade HRC have been set at the equivalent of around $600/tonne cfr southern Vietnam, a hike of $33/t from last month. In VND terms, the latest price of VND 14,680/kg is VND 660/kg higher.
The mill’s latest prices may be too high for domestic buyers, Vietnamese trading sources say. “I don’t think that it will be easy for them to sell,” a Hanoi trader says. This is particularly for the commercial HRC segment where Chinese prices are still competitive, a Chinese trader says. Hoa Phat is exporting large tonnages overseas so may be less focused on the domestic market, he adds.
Chinese 3mm base thickness Q195 HRC offers have risen to $560-565/t cfr and 3-12 mm thickness Q235 grade HRC at $560-570/t cfr.
Transaction prices for 3mm base thickness Q195 HRC from China took place earlier last week at $555-558/t cfr and for 3-12mm thickness Q235 HRC at around $562/t cfr.
These transaction levels are unchanged or up to $2/t higher from those during the week through 24 November. “There is not much volume booked,” a Ho Chi Minh trader says. The SHFE has been volatile and while it weakened at the start of last week (through 1 December), it rebounded at the end of the week.
Offers for SAE 1006 HRC from less popular Chinese mills are prevailing at $585/t cfr Vietnam but there are no deals, trading sources say. Chinese HRC are mostly used for the Vietnamese domestic market, another Hanoi trader says. “The domestic market for coated steel is weak,” he notes.
Vietnamese rerollers which export may prefer to buy Vietnamese or non-Chinese SAE 1006 HRC because of anti-dumping duties on Chinese HRC substrate in coated steel exports to the US and EU.
He heard of Japanese SAE 1006 HRC recently offered at $620/t cfr Vietnam, which was eventually booked by a reroller at $610/t cfr for use in material for export.
Kallanish assessed SAE grade 2-2.7mm thickness HRC at $580/t cfr Vietnam, unchanged on-week.
Source:Kallanish
