Covid-19 Restrictions Lead To Sluggish Demand For Hot Rolled Coil in Vietnam

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.

A booking for Russian SAE 1006 HRC for October shipment was ordered on 2 August at $908/ton 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 SAE1006 HRC is currently offered at $925-930/t CFR Vietnam. An order for a 30,000tcargo of Indian SAE 1006 HRC previously concluded at $920/t CFR on 26 July.

An Indian mill is currently offering HR in the market at $910/t CFR Vietnam. It sold SS400 grade HRC on 27July 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 SAE1006 HRC are at a minimum of $1,000/t CFR Vietnam, making Chinese HRC uncompetitive, Chinese traders say.

An offer for Chinese SAE 1006HRC is heard this week at $1,000/t CFR Vietnam, down from above $1,020/previously. While Chinese mills previously wanted importers to bear the burden for a rumored pending export tax on Chinese HRC, this particular Chinese supplier is more flexible. “Customers and sellers will discuss if an export taxi announced,” a Vietnamese trader says of HRC export sales contracts from this particular Chinese mill.

The Chinese offer price at $1,000/tis 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.

Short comments: The downturn in Vietnam market does not affect the increase of steel price, which is still on the rise recently. Interested customers, please confirm with us the price of Drum closure and Metal Cap SEAL as soon as possible.