Posted on 13 Aug 2020
Vietnam’s Formosa Ha Tinh Steel has sharply raised its prices for new allocations of October shipments, Kallanish understands. The price hike reflects the strength of Vietnam’s import market during the past month, buoyed by Chinese import buying.
Formosa’s base re-rolling hot rolled coil with skin pass was raised by nearly $45/tonne to $505-510/t cif Vietnam, up from $465/t cif last month. The large price hike is due to increased iron ore costs and also the lack of availability of Indian HRC offers, a source close to the company says.
Formosa plans to offer its latest monthly sales allocations to the Vietnamese domestic market first, he adds. Last month, the Vietnamese mill started exporting its HRC products to China through traders.
However, some trading sources say they are awaiting full details for Formosa's new prices to be released on Thursday. A Hanoi trader heard different prices in the market. Formosa has set its re-rolling HRC price at VND 11,740,000/t ($509/t), but the dollar price would depend on the dollar conversion rate used, a Vietnamese trader says.
Although these are domestic quotes, the company offers delivery from its special economic zone, making the prices effectively on a cif basis.
A Vietnamese stockist/trader ordered Indian-origin SAE 1006 HRC at $500-505/t cfr Vietnam at the end of last week. The cargo was heard to be for October/early November shipment. Offers for HRC cargoes have nearly dried up, says a regular trader who exports HRC to Vietnam.
Source:Kallanish
