On April 14, Vietnamese steel producer Formosa Ha Tinh Steel announced that its local prices for HRC mainly for June shipment will be $20/mt higher compared to last month. Despite the recent sharp decrease in import HRC prices from China, the producer has decided to increase its prices, though lower than initially expected, amid high raw material prices and still strong demand overseas.
Formosa Ha Tinh’s prices for re-rolling grade SAE1006 HRC (non-skin passed) to local customers have increased by $20/mt to $950/mt CFR. Its skin-passed SAE1006 coils are reported at $955/mt CFR, while prices for SS400 HRC are at $945/mt CFR.
The growth in prices from Formosa was initially expected to reach $50 last week, though, given the falling HRC offers from Chinese mills and traders this week, the Vietnamese producer increased its local prices by only $20/mt. “The situation in the main export markets such as the EU and the US has still remained positive in terms of demand for HDG and, as a result, those Vietnamese coated producers who are focused on exports will purchase higher-priced local HRC as Chinese coils cannot be used for production of HDG which goes for export,” a local mill’s representative told SteelOrbis.
Meanwhile, offers for SAE1006 HRC from Chinese traders with positions have decreased to $900-910/mt CFR, compared to $915-920/mt CFR last week. Meanwhile, Chinese mills who offered their materials at $938-940/mt CFR last week, have decreased their offers to $915-925/mt CFR this week. Furthermore, Chinese traders have decreased their prices for SS400 HRC by $35/mt to $860-865/mt CFR. Besides, at the beginning of the week, a deal for Chinese SS400 HRC was reportedly signed at $870/mt CFR Vietnam, while by the end of the week another cargo for 35,000 mt has changed hands at $860-865/mt CFR for June shipment. “Vietnamese customers are already bidding at $855/mt CFR for SS400 and at $895/mt CFR for SAE1006 coils,” a market insider stated.
Other foreign suppliers like those from India, Japan and Taiwan have continued to stay out of the Vietnamese market, focusing on higher-priced destinations.
The SteelOrbis’ reference price for import SAE1006 HRC has moved to $900-925/mt CFR, compared to $915-938/mt CFR last week, considering the sharp drop in offers coming from China.