Major Vietnamese producer Formosa Ha Tinh has announced a $40/mt decrease in its hot rolled coil (HRC) prices for May shipments, following the continued fall of import quotations and the slowdown of demand due to the spread of the coronavirus in the country and the possibility of a lockdown. This measure is expected by most market participants.
Formosa’s prices for SAE1006 grade skin-passed and not skin-passed HRC have come to $480/mt CFR and $475/mt CFR respectively. Offers for SS400 grade HRC have declined to $470/mt CFR, while prices for SPHT3, S235JR, SG255 and SS490 grade coils are now at $495/mt CFR. Last month Formosa Ha Tinh had announced stable HRC prices.
Taking into account recent deals for SAE1006 from India and Japan at $465/mt CFR Vietnam this week, such a sharp decrease from Formosa Ha Tinh has been expected by market sources as it will help to accelerate sales in weak market conditions.
As of March 12, Vietnam’s Ministry of Health confirmed an increase in total coronavirus infection cases by six to 44. If the situation regarding the spread of the coronavirus does not improve in the near future, Vietnam’s steel industry may post a sharp drop in steel demand in 2020, according to the Vietnam Steel Association.
