Vietnam: Imported HRC market slows down ahead of Tet holidays

Steel market activity in Vietnam showed signs of slowing down this week. The major HRC exporting countries held back their offers with the Tet Holidays (20-26 January, 2023) around the corner, informed a source.

HRC market sentiments improved in the later half of December pushing up import offers. This in turn led to a price hike announcement by domestic mill Formosa Ha Tinh by $30/t to $640/t CIF HCMC for March and early-April shipments.

Imported HRC offers:

China: Last heard offers from China were at $650/t CFR Vietnam towards last weekend. This was up by $20/t against $630-640/t CFR at the beginning of the previous week.

The majority of Chinese mills have kept offers on hold. China is observing the Lunar New Year holidays (21-27 January) during the same period as the Tet holidays in Vietnam. Therefore, holiday lull will descend on the market over the next week.

India: Indian mills have been largely focused on high realisations in the Middle Eastern and European markets. Thus there are limited quotes in the market. Last week's indications were at $630-640/t CFR.

No offers were heard from Russia, Japan and South Korea this week.

Outlook:
The Vietnamese market is expected to remain inactive next week. However, market participants informed that prices are likely to stay buoyant in the post-holiday period. Chinese mills are also likely to come up with higher offers after the holidays, thereby maintaining the upward momentum in the market.