Following the continuous fluctuations in Chinese futures HRC market, import HRC prices have been lacking clarity, though in general, moods among Vietnamese customers have been more negative than positive. At the same time, by Thursday, August 29, local producer Formosa Ha Tinh Steel (FHS), has revised its offers downwards for domestic customers following the initial price announcement back on August 19.
More specifically, after the announcement of new local HRC offers on August 19, this week FHS has decided to revise its offers, declining them by $17/mt to $511-523/mt CIF for October shipment. Offers for orders for a minimum 20,000 mt have been voiced at $511/mt CIF, while for 10,000-20,000 mt orders FHS’ new price stands at $514/mt CIF. Besides, prices for smaller volumes, for 5,000-10,000 mt in particular, have settled at $517/mt CIF, and at $520-523/mt CIF for orders below 5,000 mt.
“The fact that Formosa declined its offers makes moods rather pessimistic in Vietnam as this company sets the price trend. Though, given that offers have not dropped below $500/mt level means import prices unlikely to drop in September, and there is a change for stabilization,” a market insider told SteelOrbis.
Meanwhile, import offers for ex-China SS400/Q235 HRC have been voiced at $470-475/mt CFR level, the same as at the beginning of this week, though euphoria over further price growth has disappeared together with futures prices slump in China. Furthermore, the SteelOrbis reference price for import SAE1006 HRC has moved to $485-490/mt CFR, up by $5-10/mt week on week, but down by $10/mt on the higher end of range since Friday, August 23.