Vietnamese HRC producer Hoa Phat Group has announced its new local HRC prices for June and July shipment, decreasing them by around $13/mt from prices announced at the beginning of April and down by around $5/mt from offers heard in the market in late April. The decision has been explained by the uncertainty in the import HRC segment in Vietnam, and, even though ex-China HRC prices have shown a slight recovery, sentiment among Vietnamese buyers remains stagnant.
More specifically, on May 5, Hoa Phat’s prices for SAE1006 and SS400 non-skin-passed HRC were announced at VND 13,360-13,390/kg ($512-513/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 $13/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 $475-478/mt CFR for July shipment, up by $5/mt week on week. According to market insiders, the recent rise in ex-China HRC prices is largely due to reduced competition following the imposition of antidumping duties, as well as the absence of lower-priced offers from non-VAT traders in light of new Chinese regulations aimed at curbing export tax evasion. Although the indicative price for ex-China SAE1006 HRC stands at $490-495/mt CFR, 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 $508-510/mt CFR for July shipment, mainly the same as last week, though some said higher prices at $520/mt CFR have also been reported in the market this week. Offers for ex-Japan SAE1006 HRC have been estimated at $510/mt CFR, while, according to sources, most bids have been voiced at $500-505/mt CFR levels.
Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $490-505/mt CFR, against $485-505/mt CFR last week.