The weak demand for finished steel products in the local market in Vietnam coupled with falling import HRC prices has continued to put pressure on sentiments and, as a result, the second largest HRC supplier in the country Hoa Phat Group has decided to drop its prices by $80-90/mt month on month.
The new prices from Hoa Phat Group, including SS400 and SAE1006 HRC, have come down to VND 14,400/mt ($615/mt) CIF for mainly September deliveries, down by $80-90/mt over the past month. Such a price cut by Hoa Phat Group had been expected by market participants, as local demand has been hit hard due to the rainy season in the country, while import offers have continued to tumble this week.
Among the lowest offers for import HRC are ex-China position cargoes for SS400 HRC at $580-590/mt CFR and for SAE1006 HRC at $610-620/mt CFR, down by $40/mt week on week. Meanwhile, offers for ex-India boron-added HRC though traders have settled at $600-620/mt CFR, though, according to market insiders, some Indian traders have decreased their offers to $580/mt CFR. However, indicative HRC offers from Indian mills have still been reported at $630/mt CFR Vietnam and some even higher.
The SteelOrbis’ reference price for imported SAE1006 HRC has moved to $600-615/mt CFR, compared to $610-620/mt CFR at the beginning of this week, considering that lower offers for ex-India coils have been actively offered in the market, though the higher end of the range corresponds to offers from Chinese suppliers, who have been refusing to go lower than this level.