The second-largest HRC producer in Vietnam, Hoa Phat Group, has announced its new prices for the local market, the day after local producer Formosa Ha Tinh released its offers. Prices from Hoa Phat Group have fallen sharply by up to $60/mt this month due to very weak demand in the local market and the producer’s need to push higher volumes. Overall, the outlook is still bearish in Vietnam as demand will hardly improve before the Tet holiday.
Hoa Phat’s prices for SAE1006 HRC and SS400 HRC for March shipment are at VTD 16,700-16,800/kg, excluding VAT, or at $735-740/mt CIF, where the lower level corresponds to the price in the north, with the highest in the south. At the same time, a price at $730/mt CFR has already been reported to some customers in central and south Vietnam. Current prices are $58-60/mt lower than last month.
The latest sharp drop in prices by local HRC producers in Vietnam reflects very weak demand, sources said, and this will lead to another drop in ex-India prices in the near future. The latest deal for February-shipment Indian HRC was done at $750/mt CFR last week, which has already been assessed as being too high now. Sources said that the new bids for import HRC will be hardly above $730-735/mt CFR. Any higher prices could only be for February shipment coils, which are not available from the domestic market.
