After a reduction of $15/mt announced by Formosa Ha Tinh in HRC prices last week, another local Vietnamese mill Hoa Phat has also cut its prices. Weak demand in the country has been putting pressure on both domestic and foreign coil suppliers.
New prices for SAE HRC for Hoa Phat for September-October have been at $900/mt CFR in the north of Vietnam, $903/mt CFR in the central part of the country and at $905/mt in the south. The company’s SS400 prices are $5/mt lower than those for SEA. The new levels are around $21-22/mt below those announced in the previous month.
Market participants have been expecting this move after Formosa Ha Tinh lowered its SAE1006 HRC prices by $15/mt to $955-960/mt CFR. The lower prices from Hoa Phat are due to the relatively limited number of buyers for its material in the local market.
“Demand is the main factor now. [There is no] improvement here,” a local source in Vietnam said. Some market sources believe that prices for HRC have not hit bottom yet.
Bids for imported HRC from India are standing hardly even at $900-910/mt CFR Vietnam, while offers have remained at $930/mt CFR and suppliers are not ready to provide prices below $915-920/mt CFR, sources have said.
Bids for ex-Russia HRC have been heard at $880-890/mt CFR, versus previous deals at $908-910/mt CFR.