Vietnam's hot rolled coil import market has stabilized amid weakening Chinese prices and concerns that an emerging banking crisis could turn into a global financial crisis.
The recent price increases of the domestic manufacturer Formosa Ha Tinh have not been fully adopted by local buyers. Although FHS's prices are "quite high," a Hanoi trader says that his subsidiary has booked 10,000 tons to sell cold rolled coil domestically, and notes that "the cold sheet market is recovering this month." On March 15, FHS set the April/May shipping price for SAE 1006 HRC at the equivalent of approximately $727/t cif Vietnam.
"Some galvanized and painted coil customers may accept FHS materials as they still have export orders," a Ho Chi Minh City (HCMC) trader said. However, some Vietnamese manufacturers are still facing weak domestic demand and may prefer to use the cheaper SAE 1006 HRC imported from China to produce thicker sizes of cold rolls and dyed rolls.
Chinese SAE1006 HRC offers from lower-tier factories for April shipment were seen at about $690/ton cfr. The offer of SAE1006 HRC with a thickness of 2.0-2.5 mm from Angang, Chaoyang or Zhongtie for shipment by April 10 is $687/ton cfr is seen in Vietnam. The quantity offered from each factory was 10,000 tons. It has been heard that the offers of tier 1 Chinese producers are higher and the minimum cfr of $ 690-700/ton is at the Vietnamese level. Imported SAE quality 2-2.7mm thick hot roll rated at $685/ton cfr Vietnam, unchanged from the week.
It was heard that the Q195, Q195L and Q235 quality hot sheet offer with 3 mm thickness from Anfeng and Zongheng in China for delivery at the end of April is at the level of $652/ton cfr Vietnam. Suppliers are also making offers at lower levels, including one seeking bids from Vietnam of $645/ton cfr for the mid-April delivery of Q195 hot roll from Anfeng or Zongheng. Traders are reporting that they have not heard of the offers. "The Vietnamese market is very weak at the moment," says another Hanoi trader.
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