Posted on 25 Aug 2021
The Vietnamese hot rolled coil import market has slipped amid tightened Covid-19 curbs this week, Kallanish notes. Certain exporters have reduced offer prices by $10-20/tonne since the end of last week.
Traders are now inviting bids for Russian 2mm and up SAE 1006 HRC for November shipment at $860/t cfr Vietnam, down $20/t from official offers at $880/t cfr Vietnam. "But there are no buyers," a trader observes.
Some Vietnamese trading sources say 2mm up thickness SAE 1006 for October shipment from a certain Indian mill is offered at $890/t cfr, down $10/t from last Friday. But others think this Indian offer price is too low.
One Vietnamese trader believes $890/t cfr is the offered price for SS400 HRC from the Indian mill and not for SAE 1006 grade. The SAE 1006 HRC offer at $890/t cfr is likely a trader’s position cargo because other Indian SAE 1006 HRC offers are prevailing at $910/t cfr Vietnam, Indian trading sources observe.
Meanwhile, Hoa Phat has sold out all its domestic allocations for October shipment, according to a source close to the company. He says the mill lowered its prices by $10/t to $910/t cfr Haiphong and $915/t cfr Ho Chi Minh City. The company exports 10-20% of its production.
However, Vietnam-based trading sources say the extremely poor market sentiment has adversely affected sales for domestic HRC, so the mill may still have allocations. They report the mill’s October-shipment prices are prevailing at $900/t cfr Haiphong and $905/t cfr Ho Chi Minh City. "The market has mostly frozen," a Vietnamese trader says. "Pipemakers do not want to take large quantities because the pipe business is very bad.”
Steel demand has fallen sharply since lockdown measures were imposed in Vietnam from last month. This week, Vietnam’s military has been deployed to deter residents in Ho Chi Minh City from leaving their homes and is responsible for the distribution of food and water to the needy.
Source:Kallanish
