Posted on 11 Jan 2021
Vietnamese domestic producer Formosa Ha Tinh Steel will hike domestic prices for its March shipments by around $70/t, Kallanish understands. The large price increase reflects the bouyant HRC market in the region.
The mill announced on 8 January that its base SAE1006 HRC with skin pass for March shipments was increased to $720/t cif. The company is following the price set by Baosteel, says a source close to the company. Last month, the company raised its HRC prices by around $92/t. Vietnamese buyers have to accept the price hike because they need material, a Chinese trader says. He acknowleges that the hike will help traders achieve further price gains for export offers to Vietnam.
In the past two weeks, the release of position cargoes of hot rolled coil has moderated Vietnam’s escalating import market, Kallanish notes. These traders' offers started appearing last week and widened the market price level in Vietnam. Deals were struck at $670-680/t cfr Vietnam for SAE 1006 HRC from China. At the start of last week, a booking for 2mm SAE 1006 HRC from a Tier 1 mill took place at $725/t cfr.
Chinese mills are currently offering SAE 1006 HRC at $700-730/t cfr Vietnam for April shipments. This week on Wednesday, a 5,000t position cargo for Chinese SAE 1006 HRC for February shipment was booked at $680/t cfr. On Friday, traders are offering position cargoes at $690-700/t cfr against bids of $680-690/t cfr. These cargoes are mostly for shipment in February and March. A trader says that he is not certain that a leading stockist in Vietnam, heard bidding at $690/t cfr Vietnam, can secure a cargo.
Kallanish assessed the import price for SAE 2-2.7mm thickness HRC on Friday, 21 January, at $680-700/t cfr Ho Chi Minh City, a narrowing of last week’s price assessment level of $670-710/t cfr.
Source:Kallanish
