Vietnamese steel producer Hoa Phat Group has announced its new prices for local HRC for November shipment, maintaining them stable as compared to prices announced in September, even despite the low-priced import offers from China coming to Vietnam.
More specifically, on October 1, Hoa Phat’s prices for SAE1006 and SS400 non-skin-passed HRC were set at VND 13,900/kg ($527/mt) CIF in northern and central Vietnam, and at VND 13,930/kg ($528/mt) CIF in the south. This means new prices have remained the same as compared to the previous month’s levels.
Meanwhile, offers for ex-China 2,000 mm Q235 HRC, which are not targeted by AD duty, have been reported at $490-494/mt CFR, up by $1-4/mt since September 30 but down by $5-10/mt week on week. Meanwhile, ex-China offers for SAE1006 HRC have remained limited and unattractive to most buyers in Vietnam due to AD duty, with the indicative offers estimated at $510/mt CFR, compared to $515/mt CFR last week.
It is worth mentioning that on the last business day, September 30, before Chinese suppliers left the market for their long holiday (October 1–8), HRC futures prices dropped by RMB 87/mt ($12/mt) or 2.6 percent compared to September 23, exerting pressure on export prices and on the outlook for Chinese prices after the holiday.
Other import prices for SAE1006 HRC have been estimated at $510-520/mt CFR, depending on the supplier, mainly the same as last week. The lower end of the range corresponds to ex-Indonesia HRC offers, while offers from Malaysia and India have been estimated at $515/mt CFR and $515-520/mt CFR, respectively.
“The main reason behind the decision might be expectations for higher demand in Vietnam. Besides, the absence of ex-China SAE1006 HRC due to trade restrictions has provided more freedom to local producers,” a market insider told SteelOrbis.