HRC prices skyrocket in Southeast Asia

Mills are this week seeking staggering increases for hot rolled coil in Southeast Asia, Kallanish understands. A Japanese Tier 1 mill is even offering re-rolling HRC at a record high $1,000/tonne cfr in the region, regional trading sources say.

The Japanese mill’s offer given on 7 April for 2-2.3mm thickness SAE 1006 material, for shipment by early June, tops other offers heard in Vietnam. The Japanese producer’s offer was around $850/t cfr Vietnam two weeks ago. Before the latest hike, the mill’s offer was $920/t cfr Southeast Asia last week, a trader reports hearing.

Other re-rolling HRC offers, including an Indian offer, are currently tagged at $910-930/t cfr Vietnam. Several Chinese re-rolling 2mm and up thickness HRC quotes are also within this price range and these offers specify that the seller will bear the full cost of any change in the Chinese export tax rebate. The Chinese HRC offers are for shipment by May/early June. Indian SAE 1006 HRC prices were last heard at $840-845/t cfr Vietnam at the start of the week beginning 29 March.

Earlier this week, a Vietnamese re-roller booked a 10,000-tonne cargo comprising 2mm, 2.3mm and 2.5mm thickness HRC from a Tier 1 Chinese mill at $890/t cfr Vietnam, local trading sources report. Since it is a resale of a trader’s April-shipment position cargo, this is the final price for the buyer, with no further factoring of the tax rebate, a Vietnamese trader observes.

A regional trader also heard of a deal for Chinese SAE 1006 HRC for June shipment at $900/t cfr Vietnam. This is the net price to the buyer because the mill has factored in the 13% tax rebate into the price, he says.

Prices have risen fast, a Chinese trader notes. An Indonesian mill is offering its SS400 HRC for July shipment at a base price of $900/t fob Cigading. The producer was offering at $825/t fob for June shipment only last week. However, he thinks the increase is “reasonable” given the current strong market situation.

Anna Low Singapore