Weak Demand and Falling Chinese Prices Pressure Vietnam's HRC Market
[tintuc]
Vietnam's hot rolled coil (HRC) import market experienced further weakening last week, impacted by declining Chinese prices and already soft demand.
A deal for 10,000 tonnes of Indonesian SAE 1006 HRC was reportedly concluded at $505-510 per tonne, a $5 per tonne decrease compared to the week ending December 27th.
Vietnamese rerollers are actively seeking alternative import sources in anticipation of potential anti-dumping duties on Chinese HRC. The ongoing anti-dumping investigation is expected to be finalized in early 2025, creating uncertainty in the market.
The price of SAE grade 2-2.7mm thickness HRC as unchanged at $500-510 per tonne CFR Vietnam.
Despite the impending duties, some Vietnamese buyers continue to purchase Chinese HRC with quick shipment dates to avoid potential tariffs. Bookings for Chinese 1,500mm-width Q235 grade HRC (3-15mm thickness) for shipment by January 31st were reportedly made at around $470 per tonne CFR.
Offers for Chinese commercial Q195 3mm thickness HRC have also decreased, reaching approximately $470 per tonne CFR. Transactions for Q195 for arrival in the first half of January were previously concluded at around $478-480 per tonne CFR during the third week of December.
Traders indicate that weak demand is the primary driver of the price decline. Offers for SAE 1006 grade HRC, possibly from available stock, were heard at $488 per tonne CFR, with bids invited at $485 per tonne CFR.
Domestic producer Hoa Phat recently lowered its monthly domestic HRC prices. Its offer for non-skin passed SAE1006 or SS400 grade HRC for March/April shipment is approximately $519 per tonne CFR southern Vietnam, excluding VAT. This further contributes to the downward pressure on HRC prices in the Vietnamese market.
Vietnam's hot rolled coil (HRC) import market experienced further weakening last week, impacted by declining Chinese prices and already soft demand.
A deal for 10,000 tonnes of Indonesian SAE 1006 HRC was reportedly concluded at $505-510 per tonne, a $5 per tonne decrease compared to the week ending December 27th.
Vietnamese rerollers are actively seeking alternative import sources in anticipation of potential anti-dumping duties on Chinese HRC. The ongoing anti-dumping investigation is expected to be finalized in early 2025, creating uncertainty in the market.
The price of SAE grade 2-2.7mm thickness HRC as unchanged at $500-510 per tonne CFR Vietnam.
Despite the impending duties, some Vietnamese buyers continue to purchase Chinese HRC with quick shipment dates to avoid potential tariffs. Bookings for Chinese 1,500mm-width Q235 grade HRC (3-15mm thickness) for shipment by January 31st were reportedly made at around $470 per tonne CFR.
Offers for Chinese commercial Q195 3mm thickness HRC have also decreased, reaching approximately $470 per tonne CFR. Transactions for Q195 for arrival in the first half of January were previously concluded at around $478-480 per tonne CFR during the third week of December.
Traders indicate that weak demand is the primary driver of the price decline. Offers for SAE 1006 grade HRC, possibly from available stock, were heard at $488 per tonne CFR, with bids invited at $485 per tonne CFR.
Domestic producer Hoa Phat recently lowered its monthly domestic HRC prices. Its offer for non-skin passed SAE1006 or SS400 grade HRC for March/April shipment is approximately $519 per tonne CFR southern Vietnam, excluding VAT. This further contributes to the downward pressure on HRC prices in the Vietnamese market.
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