Posted on 14 Mar 2022
Limited orders of Chinese-origin hot rolled coil were concluded in Vietnam during the past week, Kallanish notes. Import buying was slow because end-users are waiting for new hot strip allocations from domestic producer Formosa Ha Tinh Steel.
A Vietnamese end-user bought a 10,000-tonne cargo of Chinese 2-2.5mm thickness SAE 1006 HRC for May shipment at $910/tonne cfr Vietnam on 8 March. Bookings previously took place at $860-870/t cfr Vietnam during the last week of February.
“There are few deals; buyers prefer to wait for Formosa,” a Vietnamese trader says. He heard the mill will raise its HRC prices by around $50/t. Formosa’s April-shipment prices for skin-passed SAE 1006 HRC were at $845/t cif Ho Chi Minh City last month.
Others say they expect higher prices from Formosa. “[Prices will be] not lower than $900/t cif, because SAE 1006 HRC supply is tight in the market. Also, Formosa does not need to offer low prices since export markets are paying extremely well now,” another Vietnamese trader says.
“I heard $910-930/t cif, even $940/t cif,” a Vietnamese mill manager says. While Formosa could export more quantities, “freight is crazy", he adds. “The cost of freight from Vietnam to the EU is $250/t now.” An Indian trader thinks that Formosa will raise its domestic prices to $930-950/t cif.
Chinese offers for 2-2.5mm thickness SAE 1006 HRC have spiked to $930/t cfr Vietnam. Suppliers need to sell at $910-920/t cfr, Chinese traders say. “There is still a chance to book at $910/t cfr,” another Chinese trader says. Another reports that around 10,000t of 3-12mm SS400 HRC from China was booked on 10 March at $865/t cfr Vietnam.
Mills in Japan, South Korea and India are focused on exporting HRC to the EU so these sources have dried up, a Vietnamese trader says. However, Chinese exporters will continue to offer to Vietnam because Chinese mills are hampered by a lack of export channels and anti-dumping duties when supplying the EU, a Chinese trader explains.
Kallanish assessed SAE 2-2.7mm thickness HRC at $910/t cfr Vietnam, up $27.5/t on week.
Source:Kallanish
