Posted on 16 Dec 2022
Vietnamese producer Formosa Ha Tinh Steel (FHS) has hiked domestic prices by 10% for its new allocations of hot rolled coil, Kallanish notes. Market participants deem the mill’s latest prices to be workable because Chinese product quotes have risen to similar levels.
FHS announced on 15 December the February-shipment price for non-skin-passed SAE 1006 HRC to be at the equivalent of $605/tonne (VND 14,375/t) cfr Ho Chi Minh City (HCMC), around $55/t higher than last month. FHS's SS400/pipemaking grades HRC are also set at $605/t cfr. The new prices equal around $595/t fob Vietnam, Vietnamese sources estimate. FHS's prices are fair in comparison with other regional sources, a Hanoi trader says. "But the domestic market appears to be still weak," he adds.
Chinese suppliers are offering SAE 1006 HRC at $630/t cfr Vietnam and higher, Chinese trading sources say. FHS prices are workable because SS400 HRC from China is already at this same level, a Chinese trader notes, now tagged at $600-605/t cfr Vietnam. Vietnamese buyers are currently bidding at $590-595/t cfr, Chinese traders say.
Several SS400 HRC position cargoes for prompt December/January shipment were booked at $595/t cfr HCMC on 15 December, Vietnamese trading sources report. "I do not think that traders have many position cargoes left because they have sold a lot recently," a Vietnamese trader says. He thinks Chinese SAE 1006 HRC is currently offered at $620/t cfr.
Another Vietnamese trader is uncertain if buyers will bid higher or prefer to wait for Hoa Phat Group's new price announcement due within this week. There is market chatter that the supplier will hike its prices to around $595/t cfr Vietnam.
Source:Kallanish
