Vietnamese HRC producer Hoa Phat Group has announced its new local HRC prices for October and November shipments, cutting them by around $10/mt from the previous month. The decision has been attributed to extremely slow demand in the country and is in line with market sources’ expectations, as import quotations, especially those for ex-China HRC, have failed to recover in new deals so far.
Specifically, on September 5, Hoa Phat’s prices for SAE1006 and SS400 HRC for October and November shipments have been announced at VND 14,160-14,190/kg ($589-590/mt) CIF, where the lower level corresponds to the prices in northern and central Vietnam, with the higher price in the south. Thus, the current price is around $10/mt lower than last month.
The decision to slightly decrease the prices follows the continuous discounts provided by Chinese HRC suppliers in Vietnam and the lack of significant signs of a demand recovery so far. More specifically, while ex-China SS400 HRC offers have been given at $555/mt CFR, most bids are still voiced below the $550/mt CFR level. Meanwhile, the SteelOrbis reference price for import SAE1006 HRC has settled at $575-580/mt CFR, the same as at the end of last week, based mainly on ex-China offers, while other suppliers like those from Japan, Taiwan and South Korea have been staying out of the Vietnamese market, with the indicative offers for their materials standing at $590-600/mt CFR, down by $10/mt week on week.
