Vietnam’s Formosa Ha Tinh has increased its offer prices for June shipments of hot rolled coil and wire rod. The hike comes despite lower Vietnamese import prices, Kallanish notes.
Formosa raised its HRC list prices for base SAE1006 by VND 120,000/tonne ($5) to VND 12.9 million ($556/t) cif. SPHT3, S235JR, SG255 and SS490 coils were up by the same margin to $576/t cif. The mill maintained its $5/t discount for SS400 and for pipe-making grades. Hot rolled band was up $5/t to $551/t without skin pass.
The Vietnamese HRC import market has actually fallen over the last month because of lacklustre demand and competitive offers from India and Brazil. On 18 April, Kallanish assessed SAE 1006 grade 2-2.7mm thick HRC into Vietnam at $538-542/t cfr, up $1 on-week. Formosa’s HRC enjoys the advantage of short lead times, regular customers and known quality, however.
The steelmaker also increased its base wire rod prices by another $11/t to $557/t cif. Formosa sells on a cif basis because its plant is in a special economic zone.