Vietnam: Imported HRC offers from China drop by $20/t amid holidays

Imported Chinese-origin hot-rolled coil (HRC) offers into Vietnam dropped by $20/t CFR w-o-w to $580/t CFR against $600-605/t CFR amid Labour Day holidays in China and Vietnam. Post-holidays, when the market resumed, Chinese futures dropped sharply d-o-d. In addition, subdued demand in Vietnam also weighed on the lower offers in the market.

Current week's imported HRC offers:

• Chinese HRCs (SAE1006) were heard at $580/t CFR, dropping by around $20/t CFR w-o-w. Offers for the SS400 grade of HRCs stood at around $570/t CFR.
  
  
• Indian mills are not offering in the Vietnamese market for a while.
  
  
  
• Meanwhile, no offers were heard from Russia, Japan and South Korea this week.
  
  
  

Chinese SHFE HRC futures plunge amid holidays: China's market was closed on account of Labour Day holidays starting from 29 April till 3 May 2023. Markets reopened on 4 May with a decline in SHFE HRC futures by RMB 47/t ($7/t) to RMB 3,691/t ($53/t) against RMB 3,738/t ($540/t) on 28 April. In addition, the same fell by RMB 63/t ($9/t) to RMB 3,628/t ($525) next day. Following this, domestic HRC prices in China plunged by RMB 100/t ($15/t) on 5 May.

Hoa Phat reduces monthly HRC prices for June: Hoa Phat sharply reduced monthly HRC (SAE1006, non-skinpasses) prices sharply by VND 1,700/kg ($70/t) for June and early-July, 2023 sales. Post-revision, effective prices stand at $610/t CIF HCMC or VND 14,330/kg, excluding VAT. Subdued domestic and overseas demand led to a drop in offers. Formosa Ha Tinh has also lowered HRC prices for June shipments and is offering discounts as well to push up sales.

Subdued demand from Vietnam: The Vietnamese HRC market remained week due to declining domestic demand resulting in limited trade activities, informed sources. And, there is little indication that there will be a recovery in the market soon.

Outlook:
Vietnamese buyers are awaiting price announcement of Formosa Ha Tinh (FHS) which may happen in the next 7-8 business days. Moreover, Vietnamese mills are likely to quote lower offers in the domestic market following the decline in imported offers and weakening demand.