Vietnam's hot-rolled coil (HRC) import market continues to experience sluggish trading activity. The lack of demand in Vietnam and steel price instability in China are cited as the main factors contributing to the market's sluggishness.

Chinese rerolling HRC offers for early-August shipments are stable but continue to struggle amid weak demand. Offers for 2mm upwards thickness HRC are holding ground at $555-560/tonne cfr Vietnam. Cargoes of 50% 2mm and the remaining 2.3mm, 2.5mm, and 2.7mm thickness HRC are being offered at $555/t cfr, according to a trader.

An offer for a 5,000-tonne cargo for July shipment of 100% 2mm thickness HRC from China at $560/t cfr is struggling to find takers, as reported by a Vietnamese trader. Buyers prefer to book HRC domestically from Hoa Phat, priced at similar levels. New production 2mm thickness HRC from China incurs an extra $15/t from 2mm and up thickness HRC, pegging it at $570/t cfr Vietnam.

Offers for Chinese 3-12mm thickness Q235 grade HRC for early-August shipment were prevailing at $535-537/t cfr Vietnam last Friday. Early last week, prices had slipped to as low as $530/t cfr. Chinese 3mm base Q195 HRC offers are also higher, at $537/t cfr Vietnam.

While a Hanoi trader reports hearing of a booking last Thursday for Q235 at $532-533/t cfr, others say they have not heard of any deals. A southern Vietnamese trader notes there could be some bookings taking place, but "not much". Buyers are reluctant to book because they are bearish and expect prices to come down. "The domestic market is still not good," a Hanoi trader notes.

HRC buying is muted in Vietnam, according to a regional trader on Friday. Market participants are interested to see at what level new domestic prices from Vietnam's other HRC producer, Formosa Ha Tinh, will be set this week.