Chinese hot-rolled coil remains a vital supply source for key import market Vietnam amid hefty demand for flat steel substrate, sources told Fastmarkets in the week ended Friday November 27.
Vietnamese steelmakers booked at least four import cargoes from major Chinese tier 1 steel mills, including two based in Shanghai and Liaoning.
The two steelmakers concluded transactions at increasingly higher prices of $600 per tonne, $603 per tonne, $605 per tonne and $610 per tonne cfr Vietnam for February-shipment SAE1006 HRC cargoes.
One cargo was heard to be at least 15,000-25,000 tonnes, while the others could not be confirmed.
“Vietnam is facing a big shortage of substrate now for re-rolling and galvanizing, so galvanizers are out sourcing for imported materials,” a buyer source in Vietnam told Fastmarkets on Friday.
The excellent demand for Chinese hot-rolled coil was due to strong demand from overseas buyers in Europe and South America for galvanized coils.
“Export business is very good now because many buyers need galvanized and coated coils [due to] recovering economic activity [after] the Covid-19 pandemic,” a Vietnamese trader said.
Vietnamese traders looking for hot-dipped galvanized coil for exporting to overseas markets are having difficulties securing materials.
“It’s very hard to get galvanized coil now as traders, especially with re-rolling mills expecting demand to continue being bullish,” a second Vietnamese trader told Fastmarkets.
Vietnamese galvanizers last offered 1mm HDG with 80g zinc coating at $740-750 per tonne cfr Southeast Asia, or $720-730 per tonne fob, an increase of $10-20 per tonne week on week.
East Asian HRC producers have increased their offers in the past week on the higher prices for China-origin cargoes.
Steelmakers in South Korea and Taiwan listed their initial offers at $615-620 per tonne fob, or $630-640 per tonne cfr Vietnam for re-rolling grade materials. A major Japanese steel mill expects to continue increasing its offer price for February-shipment materials amid the current bullish sentiment.
Sources said there were discussions at $615-620 per tonne cfr Vietnam for these materials.
*** Chinese hot-rolled coil
Fastmarkets’ weekly price assessment of steel HRC import, cfr Vietnam, which mainly looks at 2-3mm rerolling grade SAE1006 HRC and equivalent products, was $600-610 per tonne on Friday, up by $20 per tonne from $580-590 per tonne a week earlier.
Its assessment of steel HRC (Japan, Korea, Taiwan-origin), import, cfr Vietnam was also at $615-620 per tonne the same day, commanding a premium of $15-20 per tonne over China-origin material.
Indian steelmakers were offering HRC import cargoes at $615 per tonne cfr Vietnam although there were no transactions heard concluded for these materials.
Offers for Indian HRC cargoes are expected to remain high, especially with market participants saying steelmakers are expected to hike offers to domestic buyers by another $20-27 per tonne.
این مطلب بدون برچسب می باشد.