Posted on 16 Apr 2021
Another Vietnamese hot rolled coil producer has announced a massive increase for its latest monthly domestic prices. Hoa Phat’s latest domestic hot rolled coil prices are around $136/tonne more than last month. Trading sources tell Kallanish the Vietnamese mill’s prices are reasonable given that imports are not cheaper.
The mill announced on 15 April that its new base prices for SAE 1006/SS400 grade non-skin-passed HRC for June shipments are at VND 20,700/kg ($896/t) cif Haiphong and VND 20,800/kg ($901/t) cif Ho Chi Minh City. All its sales are within Vietnam.
Established strip producer Formosa Ha Tinh announced on 12 April a hike equivalent to around $145/t for June shipments. Formosa’s non-skin-passed SAE 1006 HRC is priced at $910/t cfr Ho Chi Minh City. Hot rolled band or non-skin-passed material is pegged at $5/t lower than skin-passed HRC.
Fresh offers for SAE 1006 HRC from Chinese Tier II mills for June shipments have risen to at least $920/t cfr Vietnam, up from $910-920/t cfr earlier in the week. “The market is strong,” a Vietnamese trader says. Supply is tight and there are fewer Chinese HRC offers. The Vietnamese trader says he has not heard of any recent import deals. "Buyers are focusing on HRC from Formosa and Hoa Phat because of lower prices," he adds.
Meanwhile, several bookings took place in Manila this week for Chinese SS400 HRC above 10mm thickness for June shipment at $820/t cfr, excluding any change in the export rebate. “This means that if the rebate is reduced, the customer has to pay. So, it’s prospectively $820 plus 13%,” a Manila trader says. “The recent price spiral has been dizzying,” he adds. Another trader reports that Taiwanese HRC recently sold at $920/t cfr Manila.
Source:Kallanish
