Vietnamese steel producer Formosa Ha Tinh (FHS) has today, March 10, announced its new prices for local HRC for May deliveries, raising them by $45/mt compared to the previous month. The more bullish views of Chinese HRC exporters seen in March and the expected demand improvement in Vietnam have supported the producer’s move.
Formosa Ha Tinh has increased offers for re-rolling grade SAE1006 HRC to local customers to $765-770/mt CFR on average, up by $45/mt from the level announced in February, SteelOrbis has learned. Prices for SS400 grade HRC for pipe makers have gained to $760-765/mt CFR. “We expected an increase, but it is higher than we thought,” a local trader said. Market sources have been expecting a hike of about $20-25/mt in Formosa’s new prices.
The sharp rise in local prices have been considered by market sources as a reflection of the better expectations for the current month. Following the weak demand in February, it is expected to improve in March with the support of higher CRC and HDG prices.
The latest offers for SAE1006 HRC from China have been coming in a wide range of $760-800/mt CFR Vietnam depending on the supplier. Indian mills have been targeting $760-765/mt CFR, while deals were done at $740-745/mt CFR last week.
For now, the SteelOrbis reference price for imported HRC in Vietnam is at $745-750/mt CFR, up by $5/mt from late last week.
