The second-largest HRC producer in Vietnam, Hoa Phat Group, has announced its new prices for the local market, cutting them below $800/mt CFR. This has happened in reaction to a price drop announced by its rival Formosa and lower-priced import deals.
Hoa Phat’s prices for SAE1006 HRC and SS400 HRC for February shipment and beyond have been settled at VTD 18,200-18,300/kg or $794-798/mt CFR, where the lower level corresponds to the price in the north, with the highest in the south. This price range is $41-42/mt lower than last month. Some market sources said that small discounts are possible with the lowest level having already been reported to some customers at $790/mt CFR.
This move by Hoa Phat has followed the $60/mt price cut by Formosa Ha Tinh to $820/mt CFR for SAE1006 HRC (non-skin passed) announced earlier this week. This time, Formosa has not released its prices officially and has focused on individual negotiations with customers. Some market sources report that deal prices for sizable volumes could be with discounts of $10/mt or more.
Local HRC suppliers, Hoa Phat especially, have been forced to drop prices below $800/mt CFR as this has already been fixed in deals for imported material. As SteelOrbis reported earlier, an ex-India cargo of 20,000-30,000 mt of SAE1006 changed hands at $790/mt CFR. Another contract at the same level, but for Chinese origin, has been rumored in the market at the end of the week, but confirmation but details have not been available. “Buyers are not in active negotiations in the local market,” a source commented regarding the relatively weak demand for imports.
The SteelOrbis reference price for imported SAE1006 HRC has been stable from early this week – at $790-795/mt CFR, down $10/mt since late last week.