Vietnamese HRC producer Hoa Phat Group has announced its new local HRC prices for August shipment, decreasing them by $10/mt from the prices announced at the beginning of June. The decision is due to the uncertainty in the import HRC segment in Vietnam, and, even though HRC futures prices in China have shown a slight recovery, sentiment among Vietnamese buyers remains stagnant.
More specifically, on July 1, Hoa Phat’s prices for SAE1006 and SS400 non-skin-passed HRC were announced at VND 13,120-13,150/kg ($502-503/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.
According to sources, the new prices from Hoa Phat are in line with market expectations given the current price levels of import HRC coming from different destinations, though some still believe that the new prices are “slightly overpriced” given the current demand. More specifically, offers for ex-China 2,000 mm Q235 HRC, which are not targeted by AD duty, have been voiced at $452/mt CFR for July shipment, the same as at the end of last week, while bids have been voiced at $450/mt CFR. Meanwhile, although the indicative price for ex-China SAE1006 HRC stands at $470-475/mt CFR levels, buyers are unwilling to pay the duty, effectively eliminating demand for this grade.
Meanwhile, indicative offers from Indonesia for SAE1006 HRC have been heard at $490-495/mt CFR for August shipment, mainly the same as last week. Workable prices for ex-Japan SAE1006 HRC have been estimated at $490/mt CFR, with negotiations currently underway.
Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $470-490/mt CFR, against $470-495/mt CFR last week.