Vietnamese HRC producer Formosa Ha Tinh Steel has dropped its local prices for August deliveries by $100/mt due to the sharp declines in ex-China prices over the past week, along with the still bearish sentiments amid slower demand in Vietnam with the start of heavy rainfalls.
Formosa Ha Tinh Steel has announced re-rolling grade SAE1006 HRC (non-skin passed) prices in the local market at $755/mt CFR, down by $100/mt from the previous month, while for skin-passed SAE1006 coils the price level has been dropped to $760-765/mt CFR. The decision to cut prices came after the sharp drops seen in the Chinese HRC spot market and the recent cut in export prices by major Chinese steel mills by $30-35/mt week on week. Besides, Vietnamese customers expect steel demand to slow down in the coming month due to the rainy season.
Prices of imported HRC, both from Chinese traders and mills, have shown rapid falls this week. One small contract for a position cargo of SS400 HRC from a trader for August shipment was heard at $738/mt CFR yesterday, while today the material has changed hands at $730/mt CFR Vietnam. The lowest offers for SAE1006 have been at $755/mt CFR recently, but no deals have been reported so far as “most customers are not willing to pay more than $750/mt CFR”.
Meanwhile, offers for ex-India boron-added HRC have been heard at $745-750/mt CFR Vietnam, with a deal signed at $750/mt CFR Vietnam, according to Indian exporters.
The SteelOrbis’ reference price for imported SAE1006 HRC is at $745-755/mt CFR, down by $5-15/mt since yesterday.