Vietnamese customers have been mostly reluctant to buy imported hot rolled coils (HRC) this week due to a lack of attractive offers and lower business activity ahead of the Chinese New Year holiday which has started today, January 24. Offers for SAE1006 from traders have been at $520/mt CFR Vietnam, while Chinese and South Korean producers have also been ready to give such a price, but the workable level for customers has stayed at a maximum of $515/mt CFR.
“This week there were few sellers and buyers in the market,” a trader said. Chinese suppliers have attempted to increase export offers, asking for $505-510/mt FOB, while offers from Taiwan have remained at $530/mt CFR, but from the middle of the week most sellers and traders have left the market ahead of the holiday. Ex-India offers have remained above $530/mt CFR Vietnam and allocation is limited, so prices are mostly nominal.
Ex-Ukraine small coils have been available at $490-500/mt CFR Vietnam. Such a low level of offers is connected with the weight of the coils. Vietnam has not been a regular sales destination for Ukraine.
The outlook for the post-holiday period is mostly negative among Vietnamese market insiders due to import HRC demand concerns. However, the limited allocation of cheap material in Asia will prevent prices from recording a sharp drop.