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

January, 23rd 2022

Free Trial Buy Subscription
DEC 03

Vietnamese HRC market struggles amid renewed Covid-19 fears


Vietnamese buyers are shunning import offers of re-rolling hot rolled coil, Kallanish notes. They are staying away because of weak demand for coated steel as well as fears that a new Covid-19 surge will delay economic recovery.

Lower-priced offers in recent days have attracted muted buying interest. A leading Japanese Tier I mill’s SAE 1006 2mm HRC was offered on 1 December at $840/tonne cfr Vietnam. Traders did not hear of any takers. “Customers would prefer to book from [local mill] Formosa at $840/t, which has a shorter lead time,” a regional trader says.

On 2 December, there was an offer for January shipment of 2-2.75mm thickness SAE 1006 HRC from a popular Chinese mill at $810/t cfr Ho Chi Minh City. The day after, a South Korean trader made a firm offer of Russian-origin 2mm up thickness SAE 1006 HRC for March shipment at $760/t cfr.

In China, the domestic steel market rebounded last week. It will be hard to sell at the low price of $800-810/t cfr if the market keeps firming, a Chinese trader says. He notes the Vietnamese market is currently really weak and demand is low for SAE 1006 HRC. Kallanish lowered its SAE 2-2.7mm thickness HRC assessment to $780-800/t cfr Ho Chi Minh City, down $20/t on-week.

Earlier last week, some traders had heard there were bids for SAE 1006 HRC at $790/t cfr Vietnam. Chinese and Vietnamese traders say that bids for SAE1006 HRC have since evaporated. Buyers have stopped purchasing, a trader in Ho Chi Minh City observes.

The market downtrend is due to low demand for coated steel and the spread of the new Omicron Covid-19 variant. Also, Vietnam has yet to recover from the impact of the last Delta variant outbreak, the trader notes. Vietnamese authorities reported a daily record of 14,508 new Covid-19 cases on 1 December.

Anna Low Singapore