The second-largest HRC producer in Vietnam, Hoa Phat Group, has announced its new local prices for HRC for shipments in May and June, dropping them slightly by around $7-8/mt month on month. However, according to market insiders, the price decrease is smaller than initially expected given HRC offers from Chinese suppliers, especially from traders.
The new prices from Hoa Phat Group for SAE1006 and SS400 HRC for shipments in May and June have settled at VND 16,000-16,030/kg ($682-683/mt) CIF, where the lower level corresponds to the price in northern and central Vietnam, with the higher price in the south. Current prices are VND 300-330/mt ($13-14/mt) lower than last month, but down by $7-8/mt on dollar basis due to changes in the exchange rate.
This move by Hoa Phat Group was expected by Vietnamese customers. However, it is considered “not enough” by most Vietnamese buyers given the sharp drop in ex-China HRC quotations coupled with poor buying in the country. In particular, this week, most ex-China SS400 HRC offers have been reported at $625-635/mt CFR, the same as last week, though several deals have been reported at $620/mt CFR and below through Chinese traders performing non-VAT trade, according to sources. “The price gap for local and ex-China SS400 HRC is enormous, exceeding $55/mt, so the market is very confused, waiting for a clearer trend,” a Vietnamese trader told SteelOrbis.
Meanwhile, offers for ex-China SAE1006 HRC have been reported at $675-680/mt CFR, down by $10-15/mt week on week, with some offers even reported at as low as $665/mt CFR.
At the same time, no firm offers have been voiced by other foreign suppliers. “Japan and Taiwan have not given any new offer so far, while, although India is out of the market as well, ex-India indicative offers are estimated at around $700/mt CFR, down by $30/mt week on week. Otherwise, it is a challenge to do business,” a market insider said.
The SteelOrbis reference prices for SAE1006 HRC stand at $675-680/mt CFR, versus $680-685/mt CFR last week, amid lower offers from China.
