A leading HRC producer in Vietnam, Formosa Ha Tinh, has announced its new prices in the local market, cutting them by $35/mt due to still very weak demand and the previous declines in import prices. Another Vietnamese supplier, Hoa Phat, is expected to follow the downtrend.
Formosa Ha Tinh’s prices for re-rolling grade SAE1006 HRC (non-skin passed) in the local market have moved to $920/mt CFR, down from $955/mt CFR in August, while the level of skin-passed SAE1006 coils is $925/mt CFR. Offers for SS400 are at $915/mt CFR. “We expected this [decline by Formosa] as demand needs to be considered,” a trader said. According to local sources, active export offers for HRC from Vietnam will be seen mainly next week, when suppliers will finalize some domestic negotiations.
Another major HRC producer in the country, Hoa Phat, may cut offers for SAE1006 HRC to $885-890/mt CFR in the local market this month, sources believe, down from $900-905/mt CFR a month earlier. Prices will be released this week. Buyers are waiting for them as the majority of buyers are working with reduced utilization rates at not above 50 percent and bids all below $900/mt CFR.
Demand for Vietnamese HDG in both the local and export markets has been poor recently. The most competitive offers for import HRC have been coming from the CIS. Traders have been asking for bids at $865-870/mt CFR for ex-Russia HRC and $890/mt CFR for ex-Kazakhstan HRC. But no new deals have been seen for now.
“China is on the rise, but in SE Asia everything is still not good,” a source said in relation to the market situation. The SteelOrbis reference price for import HRC in Vietnam has remained at $870-900/mt CFR, with the midpoint at $885/mt CFR.