Posted on 16 Feb 2022
A Vietnamese strip producer’s latest domestic hot rolled coil price is in line with the current market, Kallanish understands. The mill’s increase of $90/tonne allows it to raise its domestic market share and is also competitive against imports whose prices rose sharply over the past month.
Formosa Ha Tinh Steel (FHS) raised its April shipment prices for skin passed SAE 1006 HRC to $845/tonne cif Vietnam. The prices of its non-skin passed SAE 1006 HRC and SS400/pipe-making grades are $840/t amd $835/t cfr respectively.
Overseas trading sources approve of the mill’s latest HRC prices as reflective of the current Vietnamese market for April shipments. "I think they are very smart at pricing," a regional trader says. "Any higher. it would have killed them. They are just right in order to take care of their home market," he adds.
“The prices are realistic. FHS pricing will also assist them to increase their share in the domestic market and their long term strategy to expand HRC exports to ASEAN and to some extent, counter the threat from Krakatau Posco,” a regional trader in Singapore says. A Jakarta trader hears the mill's HRC offer for April shipments at around $900/t cfr for its regular Indonesian customers.
Krakatau Posco was offering non skin passed SAE 1006 HRC for April shipments last week at $850/t cfr Vietnam and ASEAN ports. Market sources do not agree whether there were HRC bookings from the new Indonesian market player reportedly at $830-840/t cfr Vietnam. The mill is a new one currently operated by PT Krakatau Steel and the level at $830-840/t cfr is too high for Vietnamese buyers to accept, market sources say. “Krakatau’s price is not attractive this time,” a Vietnamese reroller says.
Chinese export prices, the most competitive in Vietnam's import market now. are unchanged. A popular Chinese mill is still offering SAE 1006 2-2.5mm thickness HRC at $860/t cfr Ho Chi Minh City for shipment by end-April. “They are keeping their prices high,” a Chinese trader says on Tuesday. Small tonnages of 1,000-2,000t of Chinese 3-12mm up SS400 HRC continue to be traded this week at $830/t cfr Vietnam, unchanged from last week.
Source:Kallanish
