Vietnamese HRC buyers await updated domestic pricing levels
The Vietnamese hot rolled coil import market paused last week with users preferring to wait for the release of new allocations from a domestic mill, Kallanish notes.
“The market is quite silent, maybe they are waiting for Hoa Phat offers,” a northern Vietnam trader says.
“Demand is so bad,” says another source. Market participants are expecting local producer, Hoa Phat Group to lower domestic HRC prices by $10-15/tonne in early August, the second trader says.
If confirmed, this could reduce Hoa Phat’s HRC prices for large orders of 20,000 tonnes and more to levels of $520/t cfr for September shipments.
Some traders were trying to get buying interest from importers for Indonesian-origin SS400 HRC for 3mm base thickness, September shipment, at $510/t cfr Vietnam.
A trader says that he received indicative bids at $500/t cfr only. The Indonesian mill charges a $10/t extra processing HRC charge for 2-2.99mm thickness.
Suppliers were not actively offering Indian HRC last week despite some unconfirmed market talk that a leading southern Vietnamese reroller booked 30,000t of Indian 2mm and up thickness HRC at $510/t cfr during the week through 24 July. At that time, it was heard that certain suppliers were seeking bids for Indian HRC for end-September shipment at $515/t cfr Vietnam.
"The Indian mills have not been offering. Only Chinese traders are trying their luck [to get bids] with offers which are subject to reconfirmation [from the mill]," an Indian trader says.
Kallanish assesses SAE grade 2-2.7mm thickness HRC at $510/t cfr Vietnam, down $2.5/t on-week.
From: Kallanish
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