The Coal Trader

Coal Mining Steel HRC

Vietnamese HRC import market recovers

Vietnam’s hot rolled coil import market stabilised and lifted last week after sinking to lows at end-March, Kallanish notes. The market was quiet from Thursday because Chinese suppliers were on holiday.

Last Wednesday, offers for 3-12mm thickness Q235B HRC for May/early-June shipments from China were at around $515/tonne cfr Vietnam. Offers for 3mm base thickness Q195 HRC were at $508/t cfr. Deals for Q235B HRC took place at the offered level, a Hanoi trader says.

“Customers have high inventory of Q195 so did not book much material,” he adds. Deals for May shipments had concluded during the last week of March at lower levels of $500/t cfr for Q195 and $510-512/t cfr for Q235 HRC. These low-priced deals were attributed to traders short selling.

Offers for rerolling grade HRC from China were at $550-555/t cfr last week, up $10/t for some low-priced offers heard at end-March. Kallanish assessed SAE grade 2-2.7mm thickness HRC at $550/t cfr Vietnam, up $5 on-week.

Meanwhile, local producer Hoa Phat Group has sold out its domestic allocations of HRC. The company’s quote for non-skin passed SAE1006 or SS400 grade HRC for June delivery was set at the equivalent of around $550/t cfr southern Vietnam, excluding VAT (see Kallanish passim). “Hoa Phat’s prices for this round were really attractive,” an insider says.

Rerollers in Vietnam found Hoa Phat’s prices “good enough”, a trader says. The buyers need to book to fulfil coated steel export orders to the US and EU, he adds. The mill’s monthly HRC production is 260,000-270,000 tonnes, of which 160,000t are allocated for the domestic market and 100,000t for export.

Source: Kallanish