On January 9, major Vietnamese producer Formosa Ha Tinh Steel has announced its new local HRC prices for March deliveries with prices up $30/mt from the December levels. This increase has been supported by positive sentiments globally and the increase in ex-China prices over the past weeks, though Chinese suppliers have been more competitive.
Formosa’s Ha Tinh prices for non-skin passed SAE1006 HRC to local customers have settled at $635/mt CFR, compared to $605/mt CFR last month. Skin-passed SAE1006 coils have been priced for March at $640/mt CFR.
Meanwhile, although the increase in import prices was behind Formosa’s decision to hike its offers, ex-China HRC offers have remained the most competitive in the market. In particular, offers for ex-China SS400 HRC have been heard at $610-615/mt CFR, up by $5-15/mt week on week, while offers for SAE1006 HRC have been voiced at $625-635/mt CFR, up by $5/mt over the past week.
“Chinese offers are the lowest for now, but Formosa’s offers are still quite competitive given that other suppliers, like those from India and Japan, have not announced their firm offers yet. Besides, more orders for ex-Formosa HRC are expected to be secured overseas on the back of restocking before the Lunar New Year,” a market insider told SteelOrbis.
