Cookie & Privacy Policy

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. View the privacy policy to find out more here.

Kallanish Kallanish

Knowledge matters Knowledge matters

August, 17th 2019

Free Trial Buy Subscription
JAN 29

Vietnamese HRC market quietens after touching $500/t


The buoyant import market for hot rolled coil in Vietnam is grinding to a halt, Kallanish notes. Importers have been active since the middle of January to restock material ahead of the long Lunar New Year holiday which commences later this week.

A 20,000-tonne cargo of Indian-origin 2mm and up thickness SAE 1006 HRC was booked at $500/t cfr late last week. The cargo is for February shipment. February-shipment orders from the same mill were done earlier last week in the low-$490s cfr.

In the last two weeks a leading re-roller ordered around 130,000t of, mostly rerolling, material at $480-500/t cfr, trading and importing sources report. The spurt in buying is because the re-roller has not been actively purchasing imported HRC for some time. Other Vietnamese importers were also active placing orders during the period.

On Tuesday a top-tier Chinese mill offered material at $515/t cfr, while Indian mills are offering at $510/t cfr. “Nobody is purchasing,” a Vietnamese trader says. “There is no meaning as buyers cannot issue a letter of credit (LC) now,” he says. An Indian trader observes: “Vietnam has become silent. They cannot open LCs now.” He heard Indian HRC offers at $510/t cfr were not accepted.

Kallanish is told that banks in Vietnam will close from 1 February for the Lunar New Year holiday. Many market participants have already stopped trading, a Chinese trader says.