The leading Vietnamese HRC exporter has decided to hike offers once again after a number of deals to the export market, which significantly eased inventory pressure, SteelOrbis has learned from the market on December 12.
The latest deal from Vietnam to India has been reported for 20,000-25,000 mt of HRC at $585/mt CFR for January shipment, which is up by $10-15/mt from the previous sales of the same mill to India reported in late November. This level translates to $550/mt FOB.
Moreover, the new offer from Formosa Ha Tinh has been reported at $570/mt FOB, which corresponds to $605/mt CFR or slightly above to India and Turkey. This FOB price has already been confirmed in a deal just recently to a closer market - Thailand. According to sources, apart from already good order books in the export market for January shipment, the bullish policy of other major HRC exporters in the region, such as China and India, has led to a further hike in export prices from Vietnam.
The market is awaiting the announcement of new local prices for HRC from Formosa and Hoa Phat this week, which are expected to be above those expected earlier. Market sources have shared that they expect not below $580/mt CFR from Formosa Ha Tinh, while last month their prices were $550-555/mt CFR. This is due to the sharp hike in offers from China, which already exceed $600/mt CFR for SAE1006 material.
