Vietnamese HRC producer Hoa Phat Group has announced its new local prices for January shipment, correcting them down by $3/mt month on month on US dollar basis, while on Vietnamese dong basis the prices have actually gained VND 70,000/mt ($2.85/mt). At the same time, according to most market insiders, the new prices are slightly higher than initially expected, though Hoa Phat’s decision is explained by better sentiment in the import segment, and by the rebound in ex-China HRC prices in particular.
The new prices from Hoa Phat Group for non-skin passed SAE1006 and SS400 HRC for January shipment have settled at VND 13,990-14,020/kg ($569-570/mt) CIF, where the lower level corresponds to the price in the north, with the highest level in the south.
According to sources, most Vietnamese buyers were initially expecting Hoa Phat’s new HRC prices to be below $560/mt CIF, given still slow demand in the country. However, the recent improvement in Chinese futures HRC prices and consequently higher export offers for Vietnamese buyers have played a role in setting Hoa Phat’s new prices.
Specifically, offers for ex-China SS400 HRC from non-VAT traders have been heard at $530-535/mt CFR, up by around $10/mt week on week, while other Chinese suppliers have been offering their materials at around $540-545/mt CFR for end of December-January shipment. Meanwhile, reference prices for imported SAE1006 HRC, based on mainly on ex-China offers, have settled at $560-568/mt CFR, up by $8-10/mt week on week. Rare offers from Japanese suppliers have been estimated at $575-580/mt CFR, against $580/mt CFR last week.
