Following the declines in local prices announced by Formosa Ha Tinh Steel last week, this week another Vietnamese producer Hoa Phat Group has announced its new offers for domestic customers, decreasing them by around $20/mt month on month as the falling import HRC market has continued to affect the mood of Vietnamese buyers.
Specifically, on March 5, Hoa Phat’s prices for non-skin passed SAE1006 and SS400 HRC for May-June shipments have been announced at VND 14,690-14,720/kg ($594-596/mt) CIF, where the lower end of the range corresponds to the prices in northern and central Vietnam, while the higher price is found in the south. At the same time, market insiders said, the workable price from Hoa Phat has been estimated at $590/mt CIF. Thus, it means that the current price is around $20/mt lower than last month.
At the same time, offers from Formosa for non-skin passed SAE1006 and SS400 HRC have been reported at $595/mt CIF, against $598-602/mt CFR reported on Wednesday, February 28.
The decision of Hoa Phat to decrease prices has been expected by most Vietnamese buyers given the bearishness mounting in the import segment, though some expected new offers at even $580-585/mt CIF. The latest offers for ex-China Q195/SS400 HRC have been reported at $542-545/mt CFR, against $545-550/mt CFR last week, while several deals for Q195 HRC have been reported at $537-540/mt CFR for April shipment. Meanwhile, offers for SAE1006 HRC have been rare in Vietnam, with the indicative offers estimated at $580-585/mt CFR, down by $5/mt week on week. However, according to some buyers, the workable price is expected to decrease to $565/mt CFR.
