Tight supply in the Vietnamese HRC market and surging import prices have resulted in a $95/mt hike in new prices from the domestic producer Formosa Ha Tinh. Market sources believe that the seller may attempt another increase later this month if the current situation of low availability of coils persists.
Formosa Ha Tinh (FHS) has started to offer re-rolling grade HRC to local customers at $655-660/mt CFR on average for February shipment, up by $95/mt from last month level. Non-skin-passed coils are priced at the lower end of the range or $1-3/mt below $655/mt CFR, while offers for skin-passed HRC are reported at around $660/mt CFR +/- $1-2/mt, SteelOrbis has learned. Prices for SS400 grade HRC for pipe makers are at around $650/mt CFR or slightly above.
Offers for HRC from Formosa Ha Tinh to foreign customers are expected to be at $645/mt FOB, but the allocation is limited and local demand will take the whole volume from Formosa Ha Tinh, sources believe. The offered volume from the producer is 390,000 mt this time.
“The price range is $652-660/mt CFR [depending on customer and quality of coils], but allocation is limited. We believe that FHS’ price will increase further by $20-25/mt in the next two weeks,” a local trader told SteelOrbis.
Before the local HRC price announcement, trading in the import segment was slower in Vietnam. But one deal for 2 mm SAE1006 coils from China has been reported at $665/mt CFR, sources have said, up from the tradable value of $650-660/mt CFR late last week.
Offer prices of ex-Russia and ex-India SAE 1006 HRC have been heard at $700/mt CFR and $730/mt CFR Vietnam respectively. So the major buyers’ focus is on local purchases and on prices from China.
The SteelOrbis reference price has been increased from $650-660/mt CFR late last week to $655-665/mt CFR.