Recent reports coming from the Far East markets point to a certain slowdown in terms of demand in particular for hot rolled coils. The primary reason for this slowdown can be seen as the credit line problems steel buyers are experiencing, especially in the Vietnam market. The Vietnamese government has been tightening credit availability in the country for some time now, due to concerns over the serious levels of inflation. This has the inevitable effect of lifting up interest rates for credit lines, thereby putting pressure on costs.
SteelOrbis also hears that buyers in South Korea are giving bids for May shipment hot rolled coils ex-China mills at lower numbers than the Chinese mills are asking for. Offers by Chinese mills stand more in the $850-860/mt FOB range, while South Korean buyers are bidding only at $830-840/mt CFR for grade SS400.