Vietnamese importers have recently been buying hot rolled coil from Northeast Asia because of its price-competitiveness, Kallanish notes. The price gap between the different origins is narrowing and material from Russia and India is no longer attractive.

On Monday, 10,000 tonnes of 2mm thickness SAE 1006 HRC from Taiwan was booked at $440/tonne cfr Vietnam. Last Friday, another deal for the same tonnage, end-August cargo from a leading Japanese mill also sold at $440/t cfr Vietnam. These deals are attractive for buyers because they are for 100% 2mm thickness HRC.

Japanese mills typically sell on the principle of stable prices and supply, a Vietnamese trader says. HRC demand is picking up in Vietnam because re-rollers' exports markets in the US and EU are recovering, he adds.

There has been market chatter that South Korean and Japanese mills have been reprimanded for selling large quantities of HRC to the Chinese market at low prices in the past 1-2 months. This could lead to more supply availability for the region including Vietnam. Most Chinese SAE 1006 2-2.5mm thickness HRC, currently offered at $460/t cfr Vietnam, is priced out of the Vietnamese market, traders note.

Meanwhile, prices for traditionally lower-priced HRC in Vietnam are rising. Traders are inviting bids for 2-2.7mm thickness Indian SAE 1006 HRC for early-August shipment at $435-438/t cfr. "Indian HRC is no longer cheap," a Hanoi trader says. Offers for 2mm and up thickness SAE 1006 HRC from two Russian mills are currently priced at $430/t cfr. These are typically used for pipemaking applications.

Prices for Russian HRC plunged to around $370/t cfr Vietnam levels in early April amid weak demand arising from coronavirus lockdowns. At that time, offers for SAE 1006 2mm base HRC from South Korea and Japan fell to $400/t cfr and $425/t cfr Vietnam respectively.