Posted on 12 Jul 2021
Steel demand is weak for imports of hot rolled coil in southern Vietnam, Kallanish notes. Tightened measures to rein in a worsening pandemic situation have depressed demand further, trading sources say.
Offer prices for re-rolling grade SAE 1006 2mm and up thickness HRC from India are heard at as low as $900/tonne cfr Ho Chi Minh City from a certain mill, and from two other Indian mills at $930/t cfr. Vietnam's main HRC market is based around Ho Chi Minh City.
Vietnamese trading sources report that no trades took place during last week. Buying has been put on hold because of the pandemic, a Vietnamese trader says. A 15-day lockdown was enforced in Ho Chi Minh City and Dong Nai province starting from 9 July. It comes about after an order of social-distancing measures implemented since 31 May did not stem spiralling infections.
Chinese-origin 2.5mm and up thickness SAE 1006 HRC offers are prevailing at $930-950/t cfr. Suppliers of Chinese HRC are still compelling buyers to pay a rumoured export tax, if enforced before shipment, a Chinese trader says. But he believes the main reason for weak demand in Vietnam is due to the lockdown. Less strict measures to counter infections are also imposed in other parts of the country.
Kallanish maintained its SAE 2-2.7mm thickness HRC assessment on 9 July at $880-900/t cfr Ho Chi Minh City.
Source:Kallanish
