Indian HRC prices in Vietnam have started to show signs of weakening on Tuesday, May 26, as customers have been saying that prices have increased too much and exporters have decided to stimulate demand. At the same time, Formosa Ha Tinh has announced HRC prices for customers for July delivery at a higher level than for June, but a bit lower compared to some market participants’ expectations.
Formosa Ha Tinh announced offers for SAE1006 grade skin-passed and not skin-passed HRC at $440/mt CFR and $435/mt CFR respectively. Offers for SS400 grade HRC for pipe makers have been at $430/mt CFR, while prices for SPHT3, S235JR, SG255 and SS490 grade coils are now at $460/mt CFR. Nevertheless, the real market level prices are $10-15/mt lower as the producer is ready to provide such discounts to conclude deals. According to sources, SAE1006 HRC can be purchased at $425/mt CFR, while SS400 – at $420/mt CFR. Formosa Ha Tinh changed its system of price announcement last month, starting to offer directly to customers and closing deals case by case, not having the price list for everyone.
As SteelOrbis reported earlier, in the first half of May offers for June from Formosa have been at $410-415/mt CFR for SAE1006 and deals have been heard at $405-410/mt CFR.
At the same time, the workable level for Indian HRC in Vietnam has already slipped to $415/mt CFR, sources have said. Last week deals have been closed in a very wide range $419-440/mt CFR, but mostly for small volumes. “The Vietnam’s market could not absorb India’s $425-430/mt CFR [at this level the most deals have been done last week], China demand dropped, so not enough support for prices,” a Vietnamese trader said. Some sources have said that offers from India are mostly at $420-430/mt CFR.
