The Vietnamese flat steel producer Formosa Ha Tinh has announced its new local prices for HRC for end of December-January delivery, increasing them by $25/mt compared to last month. Some sources are expecting even bigger price increases from the producer, so demand for local coils is expected to be good in the near future.
Formosa Ha Tinh has started to offer re-rolling grade HRC to local customers at $560/mt CFR and above up to $565/mt CFR, up from $535/mt CFR and higher announced in October, SteelOrbis has learned. Prices for SS400 grade HRC for pipe makers are at around $555/mt CFR.
Offers for HRC from Formosa Ha Tinh to foreign customers are expected to be at $550/mt FOB minimum, but for now the producer has focused on local sales, seeing a shortage in Vietnam.
The overall offered import volume has been limited as Chinese mills have increased prices significantly and have not been in a hurry to conclude new deals. According to sources, Baosteel has been asking for $580/mt CFR Vietnam for SAE1006 HRC. Some other Chinese exporters have been offering at $570/mt CFR and consider $565/mt CFR as a workable level.
One Indian producer has also increased offers from $560/mt CFR to $580/mt CFR Vietnam, with overall availability from India remaining very limited amid good demand in the local market.
It is expected that negotiations for Russian coils will start at $550-555/mt CFR in Vietnam for February shipment.
The SteelOrbis reference price for imported HRC in Vietnam has remained at $560-565/mt CFR.
