Posted on 02 Mar 2023
Vietnam's Hoa Phat Dung Quat has raised the domestic price for its new allocations of hot rolled coil by around $30/tonne, Kallanish notes.
Its non-skin passed SAE1006 or SS400 grade HRC has been set at the equivalent of around $683/tonne (VND 16,330/kg) cfr Ho Chi Minh City (HCMC). Prices are for April/May shipments and exclude VAT. Its price for March/early-April shipment was pegged at the equivalent of around $652/t cfr HCMC.
Rerollers would be able to pay this new level because they have coated export orders, a Hanoi trader says. However, stockists and pipemakers will find the new prices “too high”, a Hanoi trader says. A source close to Hoa Phat disagrees. He thinks that pipemakers, particularly in southern Vietnam, would be able to accept this announced price.
The group’s Dung Quat steelworks is making preparations to restart its third blast furnace which was suspended since late last year. “The furnace could resume operations in late March or early April,” the source said.
Current offers for SS400 HRC from the smaller Chinese mills are prevailing at $635-640/t cfr. Bids are around $630/t cfr, a Chinese trader says Wednesday. The top tier Chinese mills are offering at much higher, around $660/t fob or around $670/t cfr Vietnam.
Source:Kallanish
