On September 15, Vietnamese steel producer Formosa Ha Tinh Steel (FHS) announced local prices for HRC for November-December shipments, decreasing them by around $12-21/mt over the past month, depending on the size of orders. This move was expected by local buyers given the pressure from cheap ex-China offers, coupled with still weak domestic demand in the country. However, according to sources, trade activity in the import segment has been close to zero in Vietnam this week due to uncertainty over future price trend and continuous fluctuations in ex-China offers.
More specifically, FHS’s prices for re-rolling skin-passed and non-skin passed SAE1006 and SS400 HRC lo local customers have been voiced at $588-597/mt CIF, depending on the size of orders, compared to $609/mt CIF reported in mid-August. According to sources, the higher end of the range corresponds to small orders for around 500 mt, while big volumes for around 20,000 mt are at $588/mt CIF. “I also heard lower prices from Formosa at $582-583/mt CFR for big quantities and also the prices on US dollar basis depend a lot on the exchange rate,” a Vietnamese trader told SteelOrbis.
Meanwhile, the import HRC trade has been mainly on pause as Vietnamese buyers are expecting more clarity over the price direction, while for now “everyone is tired from the ups and downs every day,” according to sources. The latest offers for ex-China SS440 and Q195 HRC have been voiced at $540-545/mt CFR, down by $5-10/mt week on week. Meanwhile, the reference price for import SAE1006 HRC has moved to $565-575/mt CFR, down by $5-10/mt over the past week.
“I heard China has stopped offering today due to the coal price rise. This market is today full of ‘news’ but with low transaction activity,” a market insider said.
