Vietnam freezes imports of Indian and Chinese rolled metal products

This week, Vietnamese importers agreed to higher prices for re-rolling of hot rolled coils. Demand for rolled metal products has decreased due to isolation measures in Ho Chi Minh City to combat the pandemic. On the other hand, a cut in production in China will reduce Chinese supplies from the Vietnamese market, Chinese traders say.

Several Vietnamese businesses ordered about 60,000 tonnes of SAE 1006 HRC on July 12 for September shipment from three Indian plants at $ 915-922 per tonne, according to trade sources. HRC will be used to produce coated steel for orders through November for shipment to the EU and the US, a source in the Vietnamese market said. However, Kallanish understands from market sources that Vietnam's export sales are currently declining.

Meanwhile, South Korean traders are again offering SAE 1006 HRC from the Russian plant, this time for September shipment, at $ 890 a ton in Vietnam. July sales of SAE 1006 HRC from the same plant in Russia took place on June 25 at a price of $ 860 per ton in Vietnam.

Some traders believe the discussions are ongoing. But a Vietnamese trader says Vietnamese buyers are not interested because domestic mill Formosa Ha Tinh is expected to announce new quotas this week. There is talk in the market that Formosa will offer the material at $ 960-980 per tonne for Vietnam. Formosa last month estimated its August SAE 1006 HRC shipments at $ 1,030 per tonne for the Hai Phong sif and at $ 1,035 per ton for the Ho Chi Minh sif. Another Vietnamese mill, Hoa Phat, is also due to announce new pricing for its HRC spin-off next week, the trader added.

Meanwhile, Chinese businesses are likely to ditch the Vietnamese market, sources in Chinese malls say. “China's HRC is not an option for Vietnam right now,” says a Chinese trader. He explains that most Chinese businesses have turned down export offers with the intention of raising prices. He believes that new export proposals could be priced up to $ 1,000 per ton of Vietnam. Another believes that Chinese export offers will be above $ 970 per ton fob. “They are not export-oriented right now,” he says.