Most Vietnamese customers have been focusing on HRC purchases in the local market, while trading activity has slowed down this week. However, most exporters still hold a positive outlook for the near future.
As SteelOrbis reported on April 12, Vietnamese steel producer Formosa Ha Tinh (FHS) announced its new prices for local HRC for June deliveries, increasing them by $145/mt to $910-915/mt CFR on average for re-rolling grade SAE1006 HRC (non-skin passed). Some offers have been reported also at $916/mt and $918/mt CFR, but most deals have been reported by sources at $910-914/mt CFR, SteelOrbis has learned on Friday, April 16.
Moreover, another HRC producer in the country Hoa Phat Group has also announced its new prices for the local market. Prices for SAE1006 and SS400 have gone up by $136/mt over the past month to $896-901/mt CFR depending on the port. Prices for HRC from Hoa Phat are usually $10-15/mt lower than those from Formosa, as the number of customers of the former is still limited and the offered volumes are lower.
“All [re-rollers in Vietnam] are buying in the local market. In such a market, bids for imports would not be higher than $910/mt CFR,” a trader said.
The activity in the import HRC market has been low this week and the last deal was reported for ex-India coils at around $920-925/mt CFR late last week. No other transactions have been heard so far. Most offers from India have been at $940-950/mt CFR, but some sources said that discounts on $930/mt CFR are possible. Chinese exporters have been asking for $940/mt CFR for SAE1006 HRC, minimum.
Suppliers believe that import activity will return from the middle of next week and that Vietnamese importers will not have any other choice but to accept a further price increase.
The SteelOrbis reference price for import HRC has remained at last week’s level of $920/mt CFR on average.
