Posted on 19 Apr 2022
Another Vietnamese strip producer has increased the domestic price for its new hot rolled coil allocations, Kallanish notes. Hoa Phat Dung Quat Steel announced a $10/tonne increase for its June/early-July shipments on Monday.
Hoa Phat’s new prices for SAE1006/SS400 grade HRC are pegged at VND 21,160/kg ($920/t) cif Haiphong and the equivalent of $924/t cif Ho Chi Minh City. The prices, which exclude VAT, are for non-skin passed strip, and are $10/t higher than last month, company sources say.
The Vietnamese mill could face some difficulties selling its HRC products because Chinese HRC prices are falling, a Chinese trader says. He hears that a position cargo for SAE 1006 2mm and up thickness HRC from a popular Chinese mill is now offered at $905/t cfr Vietnam, down from $910/t cfr last week. A direct offer from the same Chinese mill was heard at $915/t Vietnam last Thursday.
A Vietnamese stockist is heard by Chinese traders to have booked a position cargo of 2.3-3mm thickness SAE 1006 HRC from China at $890-895/t cfr Vietnam last week.
“I think it was for 20,000-30,000t,” a Chinese trader says. Chinese prices are getting lower and lower because of slow local demand in China, a Chinese trader says. It was difficult for Chinese mill to export HRC to better-paying markets such as the EU, he adds.
Noting that Chinese SS400 HRC export prices are much lower at around $860/t cfr Vietnam, a Vietnamese trader says: “Hoa Phat will change their allocation to SAE 1006 HRC if they have slow sales.”
Last Thursday, the other Vietnamese strip producer, Fomosa Ha Tinh Steel raised the domestic price for June-shipments of non-skin-passed SAE 1006 HRC by $20/t to $950/t cif Haiphong and $955/t cif Ho Chi Minh City. (see Kallanish passim). Although the mill's new prices could be steep for the current sluggish domestic market, Formosa will still be able to secure sales with local mills with galvanised export orders, traders say.
Source:Kallanish
