Vietnamese HRC producer Hoa Phat Group has announced its new local HRC prices for May and June shipment, increasing them by around $9/mt from prices in March. The decision has been made amid the recent recovery of import HRC prices in Vietnam, driven by the imposition of antidumping (AD) duty on ex-China coils.
More specifically, on April 2, Hoa Phat’s prices for SAE1006 and SS400 non-skin-passed HRC have been announced at VND 13,470-13,500/kg ($525-526/mt) CIF, where the lower level corresponds to the prices in northern and central Vietnam, with the higher price in the south. Thus, the current price is around $9/mt higher than last month.
According to sources, the new prices from Hoa Phat are in line with market expectations given the current price levels of import HRC coming from different destinations, though some still believe that the new prices are “slightly overpriced” given the current demand. More specifically, offers for ex-China 2,000 mm Q235 HRC, which are not targeted by AD duty, have been voiced at $482-485/mt CFR, up by $9-10/mt week on week. “The ex-China HRC price increase has been attributed to lower competition in the market given the AD duty, while also there are no cheaper offers from non-VAT traders due to the new Chinese regulations against export tax evasion,” a market insider told SteelOrbis, adding, “Even though the ex-China SAE1006 HRC indicative price is at $500/mt CFR, no one will pay duty, so there is no market for this grade.”
Meanwhile, offers from Indonesia for SAE1006 HRC have been heard at $535/mt CFR for June shipment, the same as last week, though some said higher prices at $540-545/mt CFR have also been reported in the market this week. Offers for ex-Japan and ex-Malaysia HRC have been estimated at $520/mt CFR and slightly higher, following several deals at $508-510/mt CFR for ex-Japan HRC and at 515/mt CFR for ex-Malaysia HRC last week.
Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $510/mt CFR, against $490-510/mt CFR last week.