Imported HRC offers to Vietnam unchanged; market yet to resume trade activities

• Import offers for Chinese HRC unchanged w-o-w amid holidays
  
  
• Indian mills to roll out offers in next few days
  
  
• Market to resume operations in a couple of days
  
  

Chinese hot rolled coil (HRC) offers have stood unchanged in the first week of year 2023. Furthermore, the Vietnamese market is inactive amid holidays and likely to resume activities in the next couple of days, sources informed.

Current week's imported HRC offers to Vietnam:

• China: Chinese mills continued offering HRCs (SAE1006) at $615-620/t CFR Vietnam. Offers for HRCs (SS400) were heard at around $605-610/t CFR.
  
  
• India: Latest offers from Indian mills, heard three weeks back, were around $580/t CFR. It is being anticipated that mills will come up with fresh offers in the next few days.
  
  
• Japan: Offers from Japan were heard at around $650/t CFR.
  
  
• No offers were heard from Russia or South Korea.
  
  

Sentiments improve, mills restart blast furnaces: The market sentiments are showing signs of improvement in Vietnam. Hoa Phat was heard to have ignited one of the five blast furnaces on 27 December 2022, that was shut down in November and December.

Participants bullish on rise in global HRC demand, prices: Towards the end of December 2022, demand started resurfacing in most countries. Few deals were reported for Europe, Middle East and Asian countries. Meanwhile, Chinese HRC offers also witnessed a continual increase since mid-December, pulling up prices from $590/t FOB Rizhao to $605/t FOB by end-December. Moreover, European mills had increased their domestic sales prices for January sales before the market went for the Christmas and New Year holidays.

Near-term outlook:
Imported HRC offers to Vietnam are likely to increase in the near term. Improving global demand will open up avenues for exports which, in turn, would boost Vietnam's demand. Thus, imports are also expected to improve, sources hinted. Japanese, South Korean and Indian mills are likely to come up with increased offers in the coming few days, they added.