The second-largest HRC producer in Vietnam, Hoa Phat Group, has announced its new local HRC prices for June and July shipments, cutting them by over $70/mt from the previous month. This is in line with market sources’ expectations, as import quotations have been moving down and there is a possibility of further declines.
On May 5, Hoa Phat’s prices for SAE1006 and SS400 HRC for June and July shipments have been announced at VND 14,330-14,360/kg ($611-612/mt) CIF, where the lower level corresponds to the prices in northern and central Vietnam, with the higher price in the south. Thus, current prices are $71/mt lower than last month.
Market sources confirmed that such sharp drop in Hoa Phat prices happened as the aggressive pricing by Chinese sellers have been impacting sentiments. Though overall demand for HRC in Vietnam has been higher as compared to the previous months, it is still below the normal levels, according to sources. “Vietnamese flats producers have been focusing on export expansion for many months as the local demand recovery is very still slow, while Chinese HRC suppliers have been very aggressive,” a market insiders told SteelOrbis.
Among the lowest offers for import HRC are ex-China SS400 position cargoes at $540-550/mt CFR, down by $20/mt week on week, while customers’ bids have been already been reported at $535/mt CFR. Meanwhile, ex-China SAE1006 HRC has been extremely rare in Vietnam with the indicative prices standing at $610-625/mt CFR, the same as last week. At the same time, other suppliers like those from India, Japan and Taiwan have been staying out of the Vietnamese market given their focus on higher-priced destinations like Europe and the Middle East. Thus, the SteelOrbis’ reference prices for SAE1006 HRC stand at $610/mt CFR, based only on ex-China HRC offers.