Posted on 15 Jan 2022
Vietnam's Hoa Phat has drastically cut domestic prices for its new hot rolled coil allocations, mirroring the same margin price cut of another domestic producer, Kallanish notes. Some trading sources deem Hoa Phat's new prices too low because they undercut current import offers.
The group's flat steel company, Hoa Phat Dung Quat Steel, announced on Thursday that its HRC prices were reduced by VND 1,500/kg ($66/tonne) from last month. Its new prices for grade SAE1006/SS400 HRC are VND 16,700/kg to northern Vietnam, VND 16,750/kg to central Vietnam and VND 16,800/kg to southern Vietnam. The prices, which exclude VAT, are for non-skin passed strip and are for March/April shipment.
The mill's prices are equivalent to around $735/t cfr Ho Chi Minh City and $730/t cfr Haiphong. The other producer, Formosa Ha Tinh, announced on Wednesday a price reduction of around $65/t for its March shipments of non-skin passed SAE 1006 (hot rolled band). Prices are now at around $755/t cfr Ho Chi Minh City and $750/t cfr Haiphong.
A Chinese trader thinks Hoa Phat’s new prices are too low as they are cheaper than Indian material, which is currently the most competitive. “Maybe, they want to collect orders before the Lunar New Year holiday,” he adds. At these levels, China cannot export at all, another Chinese trader says. Indian SAE 1006 HRC deals previously concluded at $745-750/t cfr Vietnam. There was market chatter that Indian SS400 grade HRC was booked at $740-750/t cfr at end-December. Chinese SS400 HRC is recently tagged at $770/t cfr Ho Chi Minh City.
Hoa Phat's prices pertain to the SS400 grade, as domestic users book this grade from Hoa Phat, a regional trader says. The producer’s prices are $20/t lower than Formosa, which reflects typical pricing, he adds.
Source:Kallanish
