A recent deal for Russian hot rolled coil in Vietnam has attracted attention because of its low transaction price, Kallanish notes.

Several leading Vietnamese users and a stockist booked a 90,000-tonne cargo of 2mm and up thickness SAE 1006 HRC from Russia at $860/tonne cfr Ho Chi Minh City on 25 June, Vietnamese and regional trading sources report.

A Chinese trader describes the sale as “aggressive”, while a Vietnamese trader says the deal price is “unbelievably low”. Two Korean trading houses were involved in the deal. SAE 1006 HRC from this mill is typically used for pipe-making applications in Vietnam.

Some traders believe that the trade was spurred by news that a 15% Russian export duty could be levied effective 1 August. “They will make it for July shipment to avoid the tax,” a Vietnamese trader says. He hears that HRC from the same Russian mill is now offered at $880/t cfr Vietnam. Last week, Chinese 3mm and up thickness SS400 HRC was booked at $860-865/t cfr Vietnam.