Major Vietnamese steelmaker Formosa Ha Tinh has announced its new prices for November delivery HRC for local customers at $40/mt higher than last month. The increase has been supported by the strong hike in prices of imported coils since last month. Though sentiment in the market has worsened by the end of this week and lower bids for import HRC have been seen, Formosa has attempted to benefit from earlier gains in the market.
Formosa Ha Tinh is offering non skin-passed SAE1006 HRC at $545-550/mt CFR, up by $40/mt compared to the previous month. Offers for SAE1006 grade skin-passed HRC for its customers in Vietnam have been increased to $550-555/mt CFR. Prices for SS400 grade HRC for pipe makers are at around $545/mt CFR.
The company is still offering different prices depending on the customer. Some re-rollers have been able to get $545/mt CFR for SAE1006, though most offers are at $550/mt CFR or higher.
In August, the producer increased prices by almost the same amount, by $45/mt.
The import HRC prices reached their peak at $537-543/mt CFR early this week, but by the end of the week prices have declined with the workable level assessed at $530-535/mt CFR by the end of the week, similar to those last week. Offers from China for SAE1006 HRC have been heard at $540-545/mt CFR. Indian mills have withdrawn offers, waiting for further market developments. Japanese sellers have been offering at $560-570/mt CFR, while the tradable value is still estimated at not above $550/mt CFR Vietnam.
The lower bids from Vietnamese customers have emerged after the sharp drops in futures and domestic HRC prices in China in the middle of this week. Nevertheless, Chinese traders have reported that the overall outlook is still good and demand in China is going to revive by the end of the month.
The SteelOrbis reference price for imported HRC in Vietnam has been set at $530-540/mt CFR for this week, taking into account the higher deals early in the week and lower bids later.