Vietnamese steel producer Hoa Phat Group has announced its new prices for local HRC for July shipment, maintaining them stable as compared to prices announced in May, even despite the low-priced import offers from China coming to Vietnam this week.
More specifically, on June 3, the new prices from Hoa Phat Group, for SS400 and SAE1006 HRC, have been announced at VND 13,360-13,390/kg CIF ($512-513/mt) CIF the, the same as last month. According to market insiders, new prices have been voiced “at too high levels” given the current situation in the import segment and the drops in ex-China Q235 HRC prices in particular.
Offers for ex-China Q235 HRC, 2,000 mm, which are not targeted by AD duty, have been reported at $450-455/mt CFR, against $465/mt CFR reported at the beginning of last week. Meanwhile, ex-China offers for SAE1006 HRC have remained limited and are not attractive to most buyers in Vietnam due to AD duty. However, the indicative offers are estimated to have dropped to $475-480/mt CFR, compared to $480-485/mt CFR last week.
Other import prices for SAE1006 HRC have been estimated at $490-505/mt CFR, depending on the supplier, mainly the same as last week.
“The main reason behind the decision might be expectations for higher demand ahead of the start of the rainy season. Besides, the absence of ex-China SAE1006 HRC due to trade restrictions has provided more freedom to local producers,” a market insider told SteelOrbis.
