The rapid increase of imported HRC prices in Vietnam over the past two weeks and the overall bullish sentiment in the market have resulted in a sharp increase in its domestic HRC prices by Vietnamese steelmaker Formosa Ha Tinh for October delivery. Its prices have been increased by $45/mt compared to those announced for September.
Formosa Ha Tinh has started to announce offers for October delivery non skin-passed SAE1006 HRC at $505-510/mt CFR, versus $460-465/mt CFR voiced last month for September. Offers for SAE1006 grade skin-passed HRC for its customers in Vietnam have been increased to $510-515/mt CFR. Prices for SS400 grade HRC for pipe makers are $5/mt below the level for non-skin passed SAE1006 or at around $500-505/mt CFR.
As SteelOrbis reported last month, prices for September delivery from Formosa had increased by just $10/mt.
The company is still offering different prices depending on the customer, not giving one price list for all buyers, having begun to implement this scheme from April. For now, most offers for non skin-passed SAE1006 coils from Formosa are close to $505/mt CFR.
This move by the producer was expected in the market, taking into account the latest increase in imported prices. For instance, last week one of the main Indian mills sold 30,000 mt of SAE1006 HRC at almost $505/mt CFR, as SteelOrbis reported earlier, after a contract at $495/mt CFR from India and a deal at $490/mt CFR from Taiwan earlier.
At the moment, the workable price level has increased to above $500/mt CFR, sources have said, mainly because of the bullishness of suppliers and still limited offer volumes. Offers from India are at $505-515/mt CFR Vietnam, offers from Taiwan and China are at $520/mt CFR, while offers from Japan are at $550/mt CFR. The SteelOrbis reference price for imported HRC in Vietnam has been increased from $495-500/mt CFR last week to $500-505/mt CFR.