Vietnam's Hoa Phat raises HRC prices by $75

Posted on 24 March 2021

Vietnamese producer Hoa Phat’s latest domestic hot rolled coil prices appear to be lagging behind the bullishness currently seen in the import market, Kallanish notes.

The mill raised its monthly prices by $75/tonne from last month, but when compared with the buoyant Vietnamese import market, some believe the producer could have pressed for a larger hike.

Hoa Phat’s new base prices for SAE 1006/SS400 grade HRC for May/early-June shipments are at $760/t cif northern Vietnam, $763/t cif central Vietnam and $765/t cif southern Vietnam.

The mill did not raise its prices higher because local demand is slowing down and the market appears to be peaking, a Vietnamese trader says. But another trader notes that the relatively new producer is in the process of stabilising operations and is producing HRC for pipe-making and construction applications.

Chinese HRC has not been actively booked in recent weeks. Chinese export prices have largely been uncompetitive and the rumoured Chinese export rebate cut has resulted in uncertainties and caused complications in export contracts. "There are no export offers now. Mills don’t know how to offer," says a Chinese trader who deems Hoa Phat’s latest hikes as “not high”. Another Chinese trader estimates that Chinese export offers for SS400 HRC are at around $800/t cfr Vietnam.

US and EU trade action against Vietnamese flat steel exports using Chinese HRC substrate has resulted in more orders of Indian HRC in Vietnam as well as rising Indian booking prices. A Vietnamese re-roller was heard to have booked 20,000 tonnes of SAE 1006 HRC from a Tier 1 Indian mill at $780/t cfr on 19 March. That Indian mill has since raised its offers to $800-810/t cfr Vietnam.

Another Vietnamese re-roller previously booked a 20,000t HRC cargo from another Indian mill at $760/t cfr on 15 March. "Buyers have mostly stopped importing Chinese HRC and are waiting for official information regarding the Chinese tax rebate cut," another Vietnamese trader says. Importers are buying HRC from India, Taiwan and Japan, and most of them are importing SAE1006 HRC material, he adds.

Source : Kallanish