Late last week major Vietnamese producer Formosa Ha Tinh announced its domestic hot rolled coil (HRC) prices for November shipment, cutting them by $51/mt compared to last month’s level. The sharp drop in import HRC prices, low bids and the need to realize faster November volumes were the major reasons for such a sharp price drop.
The mill’s offers for SAE1006 grade skin-passed HRC are now at $480/mt CFR, its offers for HRC which has not been skin-passed are at $475/mt CFR, and its prices for SS400 grade HRC are standing at $470/mt CFR. Offers for SPHT3, S235JR, SG255, SS490 grades coils are at $500/mt CFR. The producer said that the prices will be effective until the end of this week.
In August, Formosa had cut its local HRC prices just by $10/mt and so the latest reduction was inevitable, sources said. Import prices have lost about $26/mt since the middle of last month. The latest deals from Indian mills were concluded at $455-460/mt CFR early last week, while in addition sizable volumes have been traded at $450-452/mt CFR Vietnam, according to SteelOrbis’ information. Moreover, bids have been already heard at below $450/mt CFR.
The difference between local and import HRC prices in Vietnam has narrowed from $40/mt in August to $15-20/mt.