The second largest HRC producer in Vietnam, Hoa Phat Group, has announced its new prices for HRC for deliveries in July and beyond to local customers. Though the company has followed the announcement of Formosa Ha Tinh Steel, which dropped its prices by $95/mt, the new prices of Hoa Phat Group are more competitive and are in line with import quotes.
The new prices from Hoa Phat Group for SAE1006 and SS400 HRC for shipment in July and beyond have been settled at VND 18,300-18,400/mt ($780-795/mt) CIF, where the lower level corresponds to the prices in the north, with the highest level in the south. Current prices are around $130-140/mt lower than last month.
This move by Hoa Phat Group has followed the $95/mt decrease by Formosa Ha Tinh Steel to $855/mt CIF for SAE1006 (non-skin passed) announced on May 18. However, the current domestic prices of Hoa Phat Group are more competitive that those of Formosa considering that the latest offers for ex-China SAE1006 HRC were at $775-785/mt CFR and even offers $5/mt lower have been heard for the same grade today. Customers have also been seeing low-priced position offers for SS400 HRC from Chinese traders at $755/mt CFR.
At the same time, cheap ex-Russia HRC prices at $700/mt CFR Vietnam have emerged again. This level is still indicative and no deals or actual serious negotiations have been heard in Vietnam due to high risks relating to deliveries and payments for buyers given the sanctions on Russia because of its war against Ukraine.
