Posted on 24 Jun 2022
Vietnam’s second hot strip producer, Hoa Phat Dung Quat, has lowered its domestic hot rolled coil price for August/September shipments. The large price drop of $75-80/tonne was widely anticipated because the market is weak and the other Vietnamese HRC producer had already been forced to slash its August-shipment prices further, Kallanish notes.
Hoa Phat cut its prices for non-skin passed HRC on 22 June to the equivalent of $705/t cfr Ho Chi Minh City (HCMC) for SAE 1006 grade and $695/t cfr for SS400, company sources say. The mill’s prices for July/August shipments were at $780/t cfr and $775/t respectively for SAE 1006 and SS400 grades at the start of this month.
A Vietnamese trader says Hoa Phat's latest HRC prices may not be able to compete with Chinese-origin imports. Chinese SAE 1006 HRC offers are prevailing at around $700/t cfr Vietnam and for SS400 HRC at $660-665/t cfr. Hoa Phat could offer discounts of around $10-15/t for customers, another Vietnamese trader says.
The other Vietnamese strip producer, Formosa Ha Tinh, cut its offer prices for non-skin passed SAE 1006 HRC to $724-725/t cfr HCMC late last week. This was after it originally announced its HRC offer price at around $756/t cfr on 14 June (see Kallanish passim).
Source:Kallanish
