Posted on 05 Aug 2021
The Vietnamese import market for hot rolled coil is weak amid extended movement curbs to counter soaring Covid-19 cases in Ho Chi Minh City and other areas in the southern region. A recent deal earlier this week shows buyers are unwilling to pay up, Kallanish notes.
A booking for Russian SAE 1006 HRC for October shipment was ordered on 2 August at $908/tonne cfr southern Vietnam. The 10,000-20,000-tonne parcel was ordered because it was the lowest-priced in the market, Vietnamese trading sources say. Indian-origin SAE 1006 HRC is currently offered at $925-930/t cfr Vietnam. An order for a 30,000t cargo of Indian SAE 1006 HRC previously concluded at $920/t cfr on 26 July.
An Indian mill is currently offering HRC in the market at $910/t cfr Vietnam. It sold SS400 grade HRC on 27 July at $900/t cfr. There is a minimum order requirement of 20,000t for the Indian HRC, but sellers are unable to combine the order, a Vietnamese trader reported on Wednesday. Buyers were counterbidding the Indian offer at $890/t cfr earlier this week. "Demand is slow; the market is very quiet," he says.
Chinese mills’ export prices for SAE 1006 HRC are at a minimum of $1,000/t cfr Vietnam, making Chinese HRC uncompetitive, Chinese traders say.
An offer for Chinese SAE 1006 HRC is heard this week at $1,000/t cfr Vietnam, down from above $1,020/t previously. While Chinese mills previously wanted importers to bear the burden for a rumoured pending export tax on Chinese HRC, this particular Chinese supplier is more flexible. “Customers and sellers will discuss if an export tax is announced,” a Vietnamese trader says of HRC export sales contracts from this particular Chinese mill.
The Chinese offer price at $1,000/t is still too high for the Vietnamese buyer and the export tax is still an issue for buyers, a Chinese trader says. On the other hand, exporting HRC is no longer the core business for Chinese mills, he adds.
Source:Kallanish
