The Vietnamese hot rolled coil (HRC) market is currently in a state of anticipation as traders await the return of Chinese suppliers from their week-long holiday, according to Kallanish. A trader in Hanoi reported that there are no current offers from China, and other exporters from Japan and South Korea are also holding back. "Everyone is waiting for the Chinese to come back after Golden Week,” he noted.

Market participants are closely monitoring whether the local market will accept Hoa Phat's proposed price increase of approximately $34 per tonne for December deliveries. The company's quotes for non-skin passed SAE1006 or SS400 grade HRC were set at around $548 per tonne cfr southern Vietnam as of October 1, excluding VAT. Hoa Phat is expected to close its order book by Saturday.

However, some traders express concerns that the planned price hike may be too steep for HRC buyers, especially as Vietnamese downstream exports are experiencing sluggish demand. A mill manager pointed out that Vietnamese-origin coated and cold rolled steel exports have faced challenges due to retaliatory trade cases in the US and Mexico.

In contrast, Japanese SAE 1006 2mm thickness HRC was recently concluded at $495-500 per tonne cfr early in the week through September 27 but was later offered at $510 per tonne cfr Vietnam. Just before China's holiday, offers for Chinese SAE 1006 HRC surged to $560-565 per tonne cfr on September 30, which traders deemed unrealistic. They noted that a price increase of $60-70 per tonne over a week is not something buyers would consider.

Currently, SAE grade 2-2.7mm thickness HRC is assessed at $510-520 per tonne cfr Vietnam, reflecting an increase of $17.5 per tonne. As the market awaits China's return, uncertainty looms over future pricing and demand dynamics in the Vietnamese HRC sector.