The second largest HRC producer in Vietnam, Hoa Phat, announced its new local HRC prices for January shipment, cutting them by over $50/mt from the previous month. This was in line with the market sources’ expectations, as import quotations have been low and there are possibilities of further declines.
Hoa Phat’s prices for SAE HRC for January shipments have been announced at $835-840/mt CFR, down by $52-54/mt from the level seen last month. The lower end is for Haiphong, while the higher end corresponds to the level for Ho Chi Minh City and Phu My. This month the company’s SS400 prices are similar to SAE1006.
Market sources confirmed that the higher than initially expected drop of Hoa Phat prices (for instance, Formosa announced $40/mt decrease) has happened as the aggressive pricing by Chinese sellers has impacted sentiments. Though overall demand for HRC in Vietnam has improved compared to October and it is much higher than in September, it is still below the normal levels, sources have said. “Exports [of HDG] resumed, but local demand is not very high,” a local source said.
In the import segment, the latest reference price for ex-China SAE1006 HRC for January shipment was at $830-840/mt CFR. But customers seeing low-priced offers from traders who are offering in a short position at lower levels – at $810/mt CFR, for instance, are cautious in purchases.
