Posted on 17 Nov 2021
Hoa Phat’s price cut for its new allocations of domestic hot rolled coil is larger than expected by market participants in Vietnam, Kallanish notes. The domestic market has deteriorated alongside the plunge in the Chinese iron ore and steel markets. Prices are also under pressure due to the return of competitively-priced Chinese material in Vietnam.
The group's flat steel company, Hoa Phat Dung Quat Steel, announced on 16 November that it will reduce HRC prices by the equivalent of $55/tonne from last month. Its new prices for Grade SAE1006/SS400 HRC were 19,000 VND/kg ($834/t) cif Haiphong, 19,050 VND/kg ($836/t) cif central Vietnam and VND 19,100 VND/kg ($838/t) cif Ho Chi Minh City. The prices, which are exclusive of VAT, are for non-skin passed strip and are for January shipment.
Market participants had expected Hoa Phat will reduce prices to around $850-855/t but the actual prices are lower, a trader in Ho Chi Minh City says. The other Vietnamese producer, Formosa Ha Tinh, also reduced its HRC for January/February shipments but the announced prices on 12 November are around $40/t higher than Hoa Phat.
Formosa’s non-skin-passed hot rolled SAE 1006 was pegged at around $880/t cif Ho Chi Minh City. It would be rather difficult to find buyers now because market sentiment is bearish, another Vietnamese trader says. Some of these buyers expect prices to decrease to $700/t cfr, he says.
Chinese exports have recently been booked in Vietnam as Chinese HRC prices are workable. A cargo of 30,000 tonnes of 2.3mm and up thickness SAE 1006 HRC from China was ordered at $835/t cfr Vietnam on 11 November.
Source:Kallanish
