Vietnam’s Hoa Phat Group has raised its domestic hot rolled coil (HRC) prices for October shipment by around $10/mt compared with last month, a move widely anticipated by market insiders on the back of expectations of stronger demand in September. Still, sentiment in the market remains divided. While some see the increase as justified by the seasonal outlook, others argue that the adjustment is premature, pointing to the absence of clear signs of recovery.
More specifically, on September 3, Hoa Phat’s prices for SAE1006 and SS400 non-skin-passed HRC were set at VND 13,900/kg ($527/mt) CIF in northern and central Vietnam, and VND 13,930/kg ($528/mt) CIF in the south. This represents an increase of $10/mt compared to the previous month’s levels of VND 13,550-13,580/kg ($517-518/mt) CIF.
According to sources, the weak Chinese futures performance and increasingly strict port regulations on non-VAT HRC are adding pressure to regional trade flows, casting doubt on whether higher prices from Hoa Phat can be sustained. However, some market participants also believe the adjustment reflects Hoa Phat’s intention to allocate larger volumes for export, suggesting the producer’s focus on the domestic market may not be so strong.
In the meantime, on Wednesday, September 4, import offers for ex-China 2,000 mm Q235 HRC, which are not subject to antidumping duty, have been reported at $494-495/mt CFR for October and November shipment, down by $4-5/mt week on week. “Bids for Q235 2mm have been voiced at $490/mt CFR,” a Vietnamese trader said.
Meanwhile, ex-China SAE1006 HRC indicative offers have been voiced at around $495-500/mt CFR, down by $5/mt week on week, though interest from Vietnamese buyers is still limited due to applicable duties.
Offers from Indonesia for SAE1006 HRC have been estimated at $500/mt CFR for November shipment mainly, while offer prices for ex-Japan SAE1006 HRC stand at around $515-520/mt CFR.
The SteelOrbis reference price for import SAE1006 HRC has moved to $500-505/mt CFR, compared to $498-505/mt CFR in the previous week.