Posted on 22 Jul 2022
Vietnam’s second-largest hot strip producer, Hoa Phat Dung Quat, has sharply lowered its domestic hot rolled coil price for September/October shipments. It has thus mirrored the $100/tonne decrease last week by the other Vietnamese strip producer, Formosa Ha Tinh Steel, Kallanish notes.
Hoa Phat cut its prices for non-skin passed HRC on 21 July to the equivalent of $610/t cfr Vietnam for both SAE 1006 and SS400 grades, a company source says. According to the announcement released to its customers, the mill advised that its HRC price for September/October shipments is at VND 14,400/kg, excluding VAT, and requested that they confirm orders by 26 July.
Buyers will find Hoa Phat’s new price for SAE1006 more acceptable than for SS400 grade HRC, a Hanoi trader says. Buyers will deem the SS400 price high because customers have ample stocks and are not receiving much demand, he says. "Buyers could still buy small tonnages of SS400 HRC in order to maintain a good relationship," he adds. “Market demand is so weak here. They could have discounts privately with buyers,” another trader notes.
The company source explains that the mill is keeping its price the same this time for all areas in Vietnam including HCMC (Ho Chi Minh City). Last month, the mill tagged its prices on 22 June at $705/t cfr and $695/t cfr HCMC respectively for SAE 1006 and SS400.
Source:Kallanish
