Vietnamese HRC producer Formosa Ha Tinh Steel has announced a downward revision of its prices for HRC for deliveries in August, for the second time this week. This move was explained by a significant decrease in ex-China HRC quotations, coupled with poor buying in Vietnam.
More specifically, after on June 14, Formosa Ha Tinh Steel dropped its local HRC prices by $100/mt month on month, on June 17 Formosa Ha Tinh decreased again its prices for SAE1006 HRC (non-skin passed) to $720/mt CFR, from $755/mt CFR announced earlier this week. Thus, new HRC prices are down around $135/mt over the past month.
The decision to cut prices came after the sharp drop seen in Chinese HRC offers. In particular, prices of imported HRC, both from Chinese traders and mills, have shown a rapid fall this week. After several deals for ex-China SS400 HRC were reported at $730-738/mt CFR this week, new offers have dropped to $700/mt CFR and even below on Friday, June 17. Meanwhile, the lowest level for ex-China SAE1006 HRC has been voiced at $720/mt CFR, compared to $755/mt CFR at the beginning of this week.
“Chinese export prices have collapsed this week given the sharp drops in HRC futures and domestic prices,” a market insider said. By Friday, June 17, several Chinese mills had decreased their export offers for boron-added SS400 to $680-720/mt FOB, from $705-740/mt FOB announced earlier this week. Other mills, however, have stopped offering, preparing for new drops. At the same time, domestic HRC prices in China are at RMB 4,620-4,760/mt ($689-710/mt) ex-warehouse on June 17, with the average price level RMB 220/mt ($33/mt) lower as compared to June 10, according to SteelOrbis’ data.
Meanwhile, market insiders have also reported several deals signed for ex-India boron-added HRC at $738-750/mt CFR Vietnam over the past two weeks. The total volume of these deals is estimated at above 50,000 mt. “We don’t have any firm offers from India now, but the indicative level is estimated at $725/mt CFR,” a market insider told SteelOrbis.
“Vietnam’s Hoa Phat Group has not announced new prices so far, and we expect that it will drop its new offers next week to around $700/mt CIF, from $765-775/mt,” a Vietnam-based trader stated.
The SteelOrbis’ reference prices for imported SAE1006 HRC has moved to $720-725/mt CFR, compared to $745-755/mt CFR at the beginning of this week, and down by $30-45/mt week on week.
