The import market for hot-rolled coils (HRC) in Vietnam is experiencing a challenging period due to price decreases in China. Low-priced offers from China are putting importers and re-rollers in Vietnam under pressure.
Offers for SAE 1006 HRC with thicknesses of 2 mm and above from Tier I facilities in China are at $585/ton CFR Vietnam level. However, lower-priced offers at $575/ton CFR level are also available from lower-grade producers, creating price competition in the market.
Trade is ongoing for shipments scheduled for April, but deals are limited. Deals for Q195 grade hot-rolled coils with a base thickness of 3 mm are being transacted at $528-530/ton CFR, while those for Q235 grade coils with thicknesses between 3-12 mm are being done at $539-540/ton CFR.
Demand for hot-rolled coils in Vietnam is extremely weak. The sub-sector is being impacted by the global downturn in the hot-rolled coil market and the weakness in the Chinese steel market. This situation is adversely affecting the order books of re-rollers in Vietnam, with most having orders only filled for the first half of May.
Hot-rolled coils with thicknesses of 2-2.7 mm of SAE quality are assessed at $575-580/ton CFR Vietnam. Experts predict that the HRC import market in Vietnam will continue to be shaped by developments in Chinese prices in the coming period.
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