The second-largest HRC producer in Vietnam, Hoa Phat Group, has announced its new local HRC prices for mainly July shipment, cutting them by around $40/mt from the previous month. The decision is considered to be “rather confusing” given the recent recovery seen in import HRC prices in Vietnam, driven by the rise in Chinese prices.
More specifically, on June 6, Hoa Phat’s prices for SAE1006 and SS400 HRC for July shipment have been announced at VND 13,400-13,430/kg ($570-572/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 $40-41/mt lower than last month.
According to market sources, new prices from Hoa Phat Group are lower than initially expected and as a result are rather competitive given that ex-China SAE1006 are $15-20/mt higher, while SS400 Chinese offers are $15/mt lower as compared to the producer’s price.
This week, ex-China SS400 HRC offers from traders have been voiced at $555-565/mt CFR, versus $530/mt CFR at the beginning of last week and up by $10/mt since the end of last week. Meanwhile, ex-China SAE1006 HRC have been estimated at $585-590/mt CFR, up by $10/mt since the end of last week. Other suppliers have been staying out of the Vietnamese market so far “evaluating the future trend”, sources said.
The SteelOrbis reference price for import SAE1006 HRC has settled at around $585-590/mt CFR, versus $570-590/mt CFR, considering the improved sentiments is China.
