While Vietnamese producer Formosa Ha Tinh Steel has cut its local HRC prices two times this month, the second largest Vietnamese HRC manufacturer, Hoa Phat Group, was holding off on its announcement of new offers. However, on June 23, the company has finally dropped its local HRC prices by around $70/mt month on month to VND 16,400/mt ($705/mt) CIF for SAE1006 HRC, and to VND 16,200/mt ($695/mt) CIF for SS400 HRC for shipment in August and beyond.
This move by Hoa Phat Group was expected by Vietnamese customers, considering the sharp drop in ex-China HRC quotations, the recently revised local HRC prices of Formosa to $720/mt CFR, coupled with poor buying in the country. In particular, at the beginning of this week, ex-China offers from traders for SS400 HRC were voiced at $660-670/mt CFR Vietnam, down by $25-45/mt week on week, though by the end of this week numerous small deals have been reported at $650/mt CFR. Meanwhile, ex-China SAE1006 HRC offers have been settled at around $700-715/mt CFR Vietnam, compared to $720-725/mt CFR at the end of last week, but “offers are very limited as most Chinese mills do not want to export due to losing too much,” according to market sources.
Meanwhile, ex-India offers for boron-added HRC have been heard at $710-720/mt CFR, compared to the latest deal signed at $738/mt CFR last week. However, no deals have been heard so far, as new Indian prices are considered as “still too high” for the Vietnamese market.
Other suppliers like those from Japan, South Korea and Taiwan have continued to stay out of the Vietnamese market. The indicative offers have settled at $750/mt CFR.
The SteelOrbis’ reference price for imported SAE1006 HRC has moved to $700-710/mt CFR, compared to $720-725/mt CFR on Friday, June 17.