Re rollers in Vietnam have become active and have started replenishing the stocks of HRC ahead of Chinese Lunar New year holidays along with Tet Festival in Vietnam which is approaching in the month of February.
Stockiest and traders in Vietnam are procuring material both from domestic manufacturers as well as global sources as they expect the the market may become volatile backed by higher prices and moderate demand post holidays.
Few trade sources highlighted that currently few deals have been concluded by Vietnam based importers from Chinese steel mills-
1.Ton Dong A – a specialized company in producing cold rolled steel , galvanized iron etc in Vietnam has booked the material of 10,000 MT HRC from Baosteel at around USD 591/MT, CFR basis.
2.Nam Kim Steel – largest producer of galvanised steel coil, galvalume steel coil and pre painted in Vietnam has booked 5,000 MT HRC from Baosteel at similar price of USD 591/MT,CFR basis.
3.Another deal was concluded by Vietnam’s Hoa Sen (re-roller and flat coated steel producer) with China’s Magang of 5,000 MT at USD 585/MT CFR basis.
Also,market participants mentioned that local HRC producer Formosa Ha Tinh Steel has succeeded in selling around 60,000-65,000 MT of HRC to local flat steel re-rollers in Vietnam in the range of around USD 573-575/MT,CFR basis.
However Indian importers have resisted from giving offers to Vietnam amid strong domestic market. Indian steel mills are eyeing for a price hike of around INR 1500/MT in February.
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