Posted on 19 May 2022
Vietnam’s Formosa Ha Tinh Steel (FHS) has announced a 9.9% cut in its July-shipment domestic prices of hot rolled coil, Kallanish notes. The new reduced prices may not be low enough to spur buying by local users, however.
FHS lowered the price for new allocations of skin-passed SAE 1006 HRC by $95/tonne to $860/t cif Vietnam. The mill's price of non skin-passed SAE 1006 HRC is at $855/t cif Vietnam and of SS400/pipemaking grade at $850/t cif.
While trading sources had anticipated that the mill would cut its prices to $850-860/t cif, they still thought buyers would find it difficult to accept these prices. “The prices are too high and customers, not even the coated steel mill, can follow these prices,” a Vietnamese trader says. He thinks the Vietnamese producer will instead try to export at this price.
An Indian trader also believes buyers’ price expectations are below the announced price. “Looks like they [Formosa] will focus on slab sales and HRC exports to various destinations,” he observes.
Meanwhile, the import market for HRC remains soft in Vietnam.
Bids for 20,000 tonnes of SAE 1006 HRC from a certain Indian mill were invited on 17 May at $790/t cfr Ho Chi Minh City and Haiphong. Of the total tonnage, 30-35% was for 2mm thickness and the remaining 65-70% for 2.3mm, 2.5mm and 2.75mm thickness. The cargo is for June shipment. Most trading sources say the suppliers are traders fishing for bids. Indian HRC offered from a Tier 1 mill was heard at $850/t cfr Vietnam last week.
Chinese SS400 grade 3-12mm thickness HRC can be traded at $750/t cfr Vietnam, down from $760/t cfr last Friday, some Chinese trading sources say. Offers for SAE 1006 2mm and up thickness HRC from China are not heard so far this week, traders say. Offers were around $800/t cfr last Friday.
Source:Kallanish
