Higher imported hot rolled coil (HRC) offer and deal prices in Vietnam have supported the further sharp price increase announced by major Vietnamese producer Formosa Ha Tinh. The mill has hiked its domestic HRC prices for March delivery by $35/mt compared to its prices for February, SteelOrbis has learned from the official source.
Formosa’s prices for SAE1006 grade skin-passed and not skin-passed HRC have risen to $520/mt CFR and $515/mt CFR respectively. Its offers for SS400 grade HRC have increased to $510/mt CFR. Prices for SPHT3, S235JR, SG255, SS490 grade coils are at $540/mt CFR. Last month, Formosa Ha Tinh had increased its HRC prices by $15/mt.
Though the Vietnamese producer has announced sharp price increases for March delivery, demand for local coils will stay healthy, sources said, as Vietnamese customers have already accepted $515-530/mt CFR in a number of deals for SAE ex-China and ex-Japan SAE grade HRC this week. Over the past month (since mid-December), import prices in Vietnam have increased by $30-40/mt. and so the recent increase in local prices was quite predictable.