Market sources expect a local HRC price increase to be announced next week in the Vietnamese market due to bullish sentiment in the import segment and the shortage of supply.
According to sources, Formosa Ha Tinh is expected to increase its prices for December-January deliveries for local customers by at least $10/mt. In October, the producer set its offer prices for SAE1006 HRC at $535/mt CFR and above, while prices for SS400 grade HRC for pipe makers were at around $530/mt CFR. In November, offers for re-rolling grade coils from Formosa will be not below $545/mt CFR, sources believe. “The demand is still good and Vietnam is in short of raw material now. Normally, prices in Vietnam stabilize or go down in November, but not this year,” a local trader said.
Chinese suppliers have been offering SAE1006 HRC for January shipment at $535-545/mt CFR to Vietnam, with a deal at $530/mt CFR late last week. Offers for ex-Russia coils have increased to $525/mt CFR, from $520/mt CFR in a deal from a trader. Indian mills have been asking for $550/mt CFR, while Japanese exporters have increased prices to $565-570/mt CFR Vietnam, versus $560/mt CFR earlier. Offers from Taiwan have been limited at $560-565/mt CFR, after a deal for small volume at $555/mt CFR, as SteelOrbis reported on Monday. "There are maintenances [in China and Taiwan planned for December-January], and so some mills can offer only reduced volumes," a source said.
The SteelOrbis reference price for imported HRC in Vietnam has been set at $530-535/mt CFR.
