Vietnam's Formosa hikes HRC prices amid booming market

Posted on 13 April 2021

Vietnamese steelmaker Formosa Ha Tinh's latest monthly domestic hot rolled coil prices reflect the sharp price gains in the market over the past month.

The Vietnamese mill announced on 12 April a hike equivalent to around $145/tonne for June shipments, company sources tell Kallanish. The mill’s new price for non-skinned passed base SAE 1006 HRC is equivalent to $900/t fob Ha Tinh, they say.

Formosa’s skin-passed SAE 1006 HRC is priced at $915/t cfr Ho Chi Minh City, up from $770/t cfr last month, trading sources say. The company’s hot rolled band or non-skin passed material is pegged at $5/t lower.

The Vietnamese producer’s prices are very reasonable, a Chinese trader says. A Vietnamese trader also says Formosa's prices are reasonable. A Japanese mill offered SAE 1006 HRC last week at an astonishingly high level of $1,000/t but Vietnamese importers are not accepting this, he says.

Vietnamese buyers are instead in discussions to purchase Chinese HRC because Chinese mills are willing to give competitive prices, he adds. Chinese offers were still at $910-920/t cfr Vietnam for SAE1006 on Monday. Recent orders for Chinese SAE 1006 2-3mm thickness HRC for June shipment took place last week at $900/t cfr Vietnam.

Source : Kallanish