Vietnamese HRC producer Formosa Ha Tinh has announced its new local prices, holding them stable for December shipment, despite downside expectations. At the same time, overall sentiment has remained weak so far and demand has remained under pressure in Vietnam, which may put pressure on HRC export prices in the near future.
Formosa Ha Tinh’s prices for re-rolling grade SAE1006 HRC (non-skin passed) in the local market have remained at $920/mt CFR, while the price level for skin-passed SAE1006 coils is still at $925/mt CFR. Offers for SS400 have been rolled over at $915/mt CFR. One of the reasons for the stable prices is said to be the impact from rising costs for production, including high coking coal prices. At the same time, this move has not been supported by any improvement in demand, which is assessed as still being “not good”.
“They need to maintain prices for the local market, but can decrease them for export. I think the market is still on a downtrend,” a trading source from Vietnam said. One of the positive signals has been coming from rising HRC prices in China, but “no improvement is seen here,” another source from Vietnam said.
An offer for ex-Brazil HRC has been heard at $860/mt CFR, but no deal has been done so far. Indian traders have been still able to offer $880-890/mt CFR, while mills from India have been more bullish, asking for $900/mt CFR or above.
The SteelOrbis reference price for imported HRC to Vietnam has remained at $870/mt CFR so far.
