The key Vietnamese import market for SAE1006 hot-rolled coil was muted this week amid a resurgence of Covid-19 infections in the country and uncertainties over whether China would impose an export tax on the flat steel product on June 1.
The approaching summer monsoon season, which brings about heavy rain in Vietnam, was an additional factor inhibiting trade in the Southeast Asian country this week.
Market sources in Vietnam said that many parts of the country were implementing stringent measures to control its biggest Covid-19 outbreak so far.
“The domestic demand situation is very bad,” a Vietnamese trader told Fastmarkets on Friday May 28.
Back-to-back offers of HRC cargoes from major Indian steel mills were made at $1,000-1,050 per tonne cfr Vietnam this week, while a major Chinese steel mill asked for $950 per tonne cfr Vietnam.
Traders offered position cargoes of HRC from a major Indian steel mill at $950 per tonne cfr Vietnam.
But buyers in Vietnam were hesitant about bidding for imports amid volatile prices in China. There were almost no bids in the spot market, sources said.
A Chinese trader said buyers were indicating a willingness to buy Chinese SAE1006 HRC at around $860-870 per tonne fob, which is equivalent to $890-900 per tonne cfr Vietnam.
“Who in the right mind will want to buy in now? If Chinese prices continue to rebound, then Vietnamese mills will
purchase again,” a second Vietnamese trader told Fastmarkets on Friday.
Buyers in Vietnam are also avoiding discussions with Chinese steel mills due to the possibility of China imposing an export tax on steel products, especially HRC, on June 1.
But India mills are bullish about the spot steel market, having seen better margins in other parts of the world, including Europe and Turkey.
“The Chinese price downtrend is only a temporary thing. Once the export tax is imposed, then export prices will increase again,” a seller source in India told Fastmarkets on Friday.
Domestic demand in India is also stable amid a gradual reopening of Indian cities that were locked down to contain the spread of Covid-19, the source said.
Fastmarkets’ weekly price assessment for steel HRC, import, cfr Vietnam, which mainly looks at 2-3mm rerolling-grade SAE1006 HRC and equivalent products, was $950 per tonne on Friday May 28, down by $20-50 per tonne from $۹۷۰-۱,۰۰۰ per tonne a week earlier.
A South Korean mill that regularly sells HRC to Vietnam did not issue any offers this week, while a major Japanese steelmaker was heard to have rolled over its offer of $1,150 per tonne cfr Vietnam.
Key market participants indicated spot prices for Japan, South Korea, and Taiwan-origin HRC at around $980 per tonne cfr Vietnam.
Fastmarkets’ weekly price assessment for steel HRC (Japan, Korea, Taiwan-origin), import, cfr Vietnam was $980 per tonne cfr Vietnam on Friday, down by $70-120 per tonne from $1,050-1,100 per tonne a week earlier.
این مطلب بدون برچسب می باشد.