The rolled metal market in Vietnam plummeted

The Vietnamese hot rolled coil import market is extremely weak. Its decline is attributed to declining commodity prices and the return of Chinese exporters due to the weakness of China's domestic market.

Traders are hoping that more stable raw materials can support the HRC. “The iron ore and coal drama is over,” says a regional merchant. "The mills are still making good money, especially after the iron ore market corrected downward." Mills has made huge profits before; now they are making less profit and they cannot be greedy, he adds.

HRC prices fell sharply by $ 50-60 per tonne, according to another regional trader. Now buyers are tired of the market and want to wait until transportation costs come down. These cautious buyers will only return to place orders in January unless they have low inventory levels. “China is also entering the low season,” he adds. He has heard that some Indian SAE 1006 HRC bids are prevailing at $ 820-830 per tonne in Vietnam.

The current Japanese factory Tier 1 offer for SAE 1006 2mm HRC at $ 890 /t CFR in Vietnam for January delivery is surprisingly low. “But this is for his regular customers,” says a Chinese trader. Another Japanese plant is supplying SAE 1006 HRC to a Malaysian rewinder for $ 950-1000 per tonne, a Singaporean trader said.

Pre-selling by HRC traders at lower prices exacerbates the market downturn. They are offering the SS400 HRC for January shipment at $ 810-820 per tonne in Vietnam, Vietnamese trader sources say. According to the Vietnamese trader, January shipments of the 3mm base SAE1006 are offered at a price of $ 850-860 per ton. They also offer HRC at $ 765 per tonne for April shipment. These proposals are for open sources.

A Chinese trader is offering shipments in January /early February at $ 815 per tonne in Vietnam for the SS400 HRC brand and $ 850 per tonne for the SAE 1006 HRC. According to an informed source, the trader can bid at least $ 10 per tonne for a shipment in late February - early March as he expects prices to continue to decline.

“The market is dead. Factories and traders cut prices to get orders. But buyers prefer to wait and see because the downtrend is obvious, says the Vietnamese trader. “Many buyers who bought HRC from an Indian plant last month will make big bucks. losses ", - believes another Vietnamese trader. For November shipment, the SS400 HRC cargo with a lifting capacity of 40,000 tons was ordered at a price of $ 910-920 per ton.