Vietnamese HRC producer Hoa phat Group has announced its new local prices for November and December shipments, cutting them by around $17/mt on dollar basis from the previous month. The decision has been attributed to still slow demand in the country and is in line with market sources’ expectations for the post-holiday period in China, as import quotations, especially those from China, are still not expected to recover in new deals.
Specifically, on October 2, Hoa Phat’s prices for SAE1006 and SS400 HRC for November and December shipments have been announced at VND 13,920-13,950/kg ($572-573/mt) CIF, where the lower end of the range corresponds to the prices in northern and central Vietnam, with the higher price in the south. Thus, the current price is around $17/mt lower on US dollar basis than last month, while on Vietnamese dong basis the prices have lost VND 240/mt ($10/mt).
The decision to decrease the prices follows the discounts provided by Chinese HRC suppliers before they left for their long holiday (September 29-October 6). More specifically, last week, a deal for ex-China SAE1006 HRC was heard at $568/mt CFR, while most offers were voiced at $570/mt CFR. Offers for ex-China SS400 and Q195 HRC were estimated at $535-540/mt CFR at the end of last week.
“The new offers from Hoa Phat reflect the current market mood, meaning that no significant recovery is expected in China after the holiday,” a Vietnamese trader told SteelOrbis.