Formosa hikes HRC prices by $15/mt in Vietnam, despite slow demand and pressure from Chinese suppliers

Friday, 10 May 2024 15:03:35 (GMT+3)   |   Istanbul
       

On May 10, Vietnamese steel producer Formosa Ha Tinh Steel (FHS) announced that its local prices for HRC, mainly for July shipment, will be $15/mt higher compared to last month. The producer has decided to increase its prices mainly on the back of the still positive sentiments for the flats market this month, even though there is still big pressure from import prices, especially given the gradual revival of non-VAT HRC export offers from China.

FHS’s prices for non-skin passed SAE1006 and SS400 HRC in the local market have settled at $595-605/mt CIF Vietnam ports, versus $580-590/mt CIF last month. Meanwhile, skin-passed SAE1006 HRC prices have been voiced at $600-610/mt CIF, up by $15/mt month on month as well.

According to sources, the situation in the main export markets such as the EU has been improving in terms of demand for HRC and also for HDG and, as a result, those Vietnamese coated producers that are focused on HDG exports will purchase higher-priced local HRC as Chinese coils cannot be used for production of HDG which goes for export. Specifically, this week, offers for ex-Vietnam HRC in Europe have been voiced at around $645/mt CFR, which translates to around $595/mt FOB, while export offers for HDG have settled at around $840-850/mt CFR or around $790-800/mt FOB.

In the meantime, in the import HRC market in Vietnam, market insiders have been actively discussing the return of non-VAT Chinese traders to the market with cheaper offers. According to market insiders, several deals for ex-China Q235/SS400 HRC are reported to have been signed at $535/mt CFR, while the previous offers reported earlier this week were standing at $540-545/mt CFR. Meanwhile, offers for ex-China SAE1006 HRC have been estimated at $560/mt CFR, while indicative offers for ex-India SAE1006 HRC have been heard at around $575/mt CFR.


Similar articles

Flat steel prices in local Taiwanese market - week 47, 2024

21 Nov | Flats and Slab

Malaysia’s Eastern Steel ready to start HRC sales, impact on export markets to be limited

21 Nov | Steel News

Local EU HRC prices fail to rise in new deals amid insufficient demand

21 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 21, 2024 

21 Nov | Longs and Billet

US may raise dumping margin for HRC from Nippon Steel

21 Nov | Steel News

Foreign HRC suppliers attempt hikes in Vietnam, but buyers still insist on discounts

20 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 20, 2024 

20 Nov | Longs and Billet

China’s HRC output up 2.2 percent in January-October

20 Nov | Steel News

Ex-India HRC prices remain relatively stable despite extremely slow sales

19 Nov | Flats and Slab

Emirati buyers show more interest in HRC imports due to attractive offers

19 Nov | Flats and Slab