In line with expectations, Vietnamese steel producer Formosa Ha Tinh (FHS) has announced its new local HRC prices, cutting them by $10/mt compared to June, following the same move seen by another local mill Hoa Phat last week. FHS has been not ready to cut prices more, while it is competing with Japanese sellers, who have become more active in the trading of SAE grade HRC to Vietnam amid some slowdown of sales from China.
On July 9, FHS announced its new prices for non-skin passed SAE1006 and SS400 HRC in the local market at $497/mt CIF Haiphong and Phu My for orders for a minimum of 20,000 mt, down by $10/mt compared to the level seen in June. For 10,000-20,000 mt orders, the price has settled at $500/mt CIF, versus $509/mt CIF before. For smaller volumes of 5,000-10,000 mt, 2,000-5,000 mt and below 2,000 mt of HRC, the buyers will have to pay $502/mt CIF, $504/mt CIF and $507/mt CIF, respectively. All prices are for August-September shipments.
The current prices from Formosa for the local market for large volumes are still $5-6/mt lower than those from the other major Vietnamese producer Hoa Phat Group ($502-503/mt CIS).
As for the import market in Vietnam, at the end of last week a deal for 2,000-5,000 mt of ex-Japan HRC was done to Vietnam at $510/mt CFR. The price is assessed as being on the higher side as, according to market sources, most bids for ex-Japan coils are still at $490-495/mt CFR, only slightly higher than $490/mt CFR last week, so this deal is considered mainly as an exception “as delivery is prompt.”
Ex-Indonesia HRC offers are at $490-500/mt CFR, almost unchanged from last week. But the interest is low not only from the buyers’ side, as they will target not above $485/mt CFR for this origin, but also from the seller. The Indonesian mill is targeting $480-490/mt FOB for 3mm HRC in the European market.
Chinese HRC offers have increased slightly from last week, based on some gains in futures seen earlier. But, in general, the mood is still very shaky, and buyers are waiting for a clearer price trend after the production cuts in Tangshan finish in mid-July. Offers for 2,000 mm Q235 HRC, which are not targeted by AD duty, are at $457-458/mt CFR and up to $460/mt CFR, which is up by $5-8/mt compared to last week. The ex-China SAE1006 price is assessed indicatively at $480/mt CFR, increasing by $5-10/mt over the past week, with no interest from Vietnamese buyers.
The SteelOrbis reference price for import SAE1006 HRC has increased by $10/mt on the lower end and by $5/mt on the upper end to $480-495/mt CFR.