Vietnam HRC Market Follows Chinese Price Rises

As China's domestic market recovers, Vietnam's hot-rolled coil import market continues to rise. The price gap between commodity grade and re-rolled strip is narrowing.

SAE 1006 hot-rolled coils with a thickness of 2-2.5mm from China are generally quoted at US$585/ton CFR in Vietnam, which is higher than the US$580-585/ton CFR in the previous week. It is reported that a major stockist in Vietnam ordered 30,000 tons of SAE 1006 hot-rolled coils from a Chinese steel mill at a price of US$578/ton CFR for shipment in January. Vietnamese trade sources heard that the deal was struck earlier in the week of November 24.

The same Chinese mill is currently offering $583/t CFR for 2,000 tonnes of 1,215mm width 2-2.7mm thick HRC for shipment before February 10, but is also collecting bids at $580/t CFR. Kallanish assessed SAE grade 2-2.7mm thick hot rolled coil prices at $580/tonne CFR Vietnam, up $2.50 from the previous week.

The transaction price of commercial-grade hot-rolled coils was US$555-560/ton CFR in Vietnam. In the past week, some small orders for Q235 hot-rolled coils with a 3-12mm thickness were reached at US$560/ton CFR. A trader in Ho Chi Minh City said: "I heard that there are Q195 hot-rolled coil transactions every day, and the price is 555-558 US dollars/ton CFR." Another trader said that these transactions are in small batches, and each batch does not exceed 5,000 tons. Last month, the import price of commodity-grade hot-rolled coils in Vietnam was about US$30/ton lower than that of re-rolled hot-rolled coils.

A Hanoi trader said the market was calm on Friday afternoon. In addition to the market pause caused by the rapid price increase, customers also worry that goods shipped in January/February may be delayed. He explained that they were worried about congestion at Chinese and Vietnamese ports due to the Lunar New Year holiday.