The Vietnamese hot rolled coil import market remains weak on bearish sentiment. The limited buying that has been taking place in recent weeks is confined to Indian-origin material because of its competitive pricing, Kallanish notes.

A leading re-roller ordered a 10,000-tonne parcel of Indian-origin SAE 1006 2mm up thickness HRC for early-March shipment on 6 January at $745/tonne cfr Ho Chi Minh City. This mill and another Vietnamese re-roller each ordered 10,000t February-shipment SAE 1006 HRC cargoes from India at $750/t cfr during the week ending 31 December. A similar Indian-origin HRC purchase for end-February shipment concluded on 22 December at $760/t cfr.

Suppliers of Chinese SAE 1006 HRC are not keen to export now. "They cannot compete with Indian SAE1006 material. Bid prices are low, whereas the Chinese market is rising daily," a Chinese trader says. He hears Indian SS400 HRC has been recently ordered at $750/t cfr Vietnam.

There are rumours that customers have also booked Indian SS400 grade HRC at $740-750/t cfr, a manager at a local mill says. Indian HRC is the lowest-priced in the Vietnamese market, he adds. Chinese SS400 grade HRC is currently offered at $770/t cfr Ho Chi Minh City, Chinese trading sources say.

Some trading sources believe that traders are behind the lower-priced Indian HRC sales. "They are short-selling," a Vietnamese trader says. South Korean SAE 1006 HRC is currently offered at $765/t cfr, he adds. The approaching Lunar New Year holiday and fears over the Omicron Covid-19 variant spread have dented market sentiment in Vietnam.

Kallanish assessed SAE 2-2.7mm thickness HRC at $740-750/t cfr Ho Chi Minh City, down $20 on-week.