Posted on 24 May 2021
The meteoric rise of Vietnam’s hot rolled coil import market has ground to a halt, Kallanish notes. The market is seeing wide price gaps as buyers and sellers grapple with the downturn in China. Buyers have stopped giving bids or are giving very low-priced bids. At the same time, Asian mills are holding tight to offer prices from before China’s price correction.
Several position cargoes of Chinese SAE 1006 HRC for May/June shipments were heard ordered early last week at $980-990/tonne cfr Vietnam, but these had dried up by the end of the week, certain traders report. Mills in India and South Korea appear to have withdrawn offers from the market during the week. Chinese mills are still offering SAE 1006 HRC at $1,040-1,050/t fob, with freight around $30/t to Vietnam. A Japanese mill’s offer is still tagged at $1,150/t cfr.
“Buyers in other markets including Turkey, the Middle East and South America can pay much higher than Vietnam,” a Chinese trader says. Only Vietnamese customers are looking for much lower prices, he says. He received a firm bid for SAE 1006 HRC at only $900/t cfr Vietnam. “The Chinese market is stabilising; sellers will not accept this bid,” a Vietnamese trader says. A bid of $1,000/t cfr is reasonable, he adds.
Kallanish lowered its price for SAE 2-2.7mm thickness HRC on 21 May to $980-1,020/t cfr Ho Chi Minh City, down $45 on-week.
Meanwhile, a 40,000-tonne Russian-origin re-rolling slab cargo for August shipment was booked last week at $930/t cfr Indonesia, trading sources report. The transacted price of $930/t is “possibly the best” that can be achieved in Asia now, a regional trader says. HRC prices have fallen to $1,020-1,050/t cfr Vietnam and some Chinese Tier II mills are at even lower than this level.
Source:Kallanish
