HRC importers in Vietnam have been more active, trying to purchase volumes before a further increase in offers. Deals have been mostly for ex-China coils. Also, on Wednesday, October 14, Formosa Ha Tinh has announced its new offers for December delivery, cutting its offer prices by $15/mt compared to last month. The decline was more or less expected after the previous drop in import prices, but sources expected lower prices from the producer.
The latest deal for 30,000 mt of ex-China SAE1006 HRC has been done at $525/mt CFR. Another contract was heard at $520-525/mt CFR early this week. The deal price is higher than $516/mt CFR in a contract reported last Friday. Sources reported more inquiries in the market and a possible further increase in the near future. Offers for Chinese HRC SAE1006 have already reached $530-535/mt CFR.
Offers from S. Korea, Japan and Taiwan are mainly at $545-550/mt CFR Vietnam, with no deals so far though they are expected soon.
Formosa Ha Tinh, the main HRC producer in Vietnam, has started to announce its new prices for HRC for local customers for December shipment. According to trading sources, a deal for SAE1006 HRC has been done at $535/mt CFR for December. “We expected $520-525/mt CFR from Formosa, but higher prices from China helped [Formosa Ha Tinh],” a local source said. Prices for SS400 grade HRC for pipe makers are at around $530/mt CFR. As SteelOrbis reported earlier, the producer managed to increase prices by $40/mt in September.
Offer prices for HRC from Formosa Ha Tinh have been at $525/mt FOB for foreign customers.
SteelOrbis has increased its import HRC price in Vietnam by $10/mt from last week to $525/mt CFR so far.