Vietnam: Formosa Ha Tinh lowers HRC offers for Sep-Oct'24 sales
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Vietnamese steel giant, Formosa Ha Tinh (FHS), has reduced its hot-rolled coil (HRC) prices by approximately $40/tonne (t) CIF m-o-m for shipments scheduled in September and October, 2024. Following this adjustment, prices of SAE1006 skin-pass HRCs now range between $528 and $540/t CIF, compared to the previous $570 to $580/t CIF in Ho Chi Minh City (HCMC). Non-skin pass coils are priced at $520 to $530/t CIF, depending on the volume booked. This price revision came in response to weakened domestic demand and a significant drop in imported HRC prices from China.
Key factors:
1. Imported HRC offers drop by $10/t w-o-w: China's hot-rolled coil (HRC) export offers to Vietnam dropped by $10/t w-o-w to $505-510/t CFR against $515-520/t CFR HCMC. Domestic demand in China weakened due to weather challenges and falling steel futures. However, Chinese steel exports increased by 7.1% to 7.82 million tonnes (mnt), driven by competitive pricing. As domestic demand remained weak, Chinese producers may further prioritise exports, especially if global demand improves.
2. Hoa Phat reduces HRC prices by around $25/t m-o-m: Hoa Phat has lowered its monthly hot-rolled coil (HRC, SAE1006, non-skin-passed) prices by approximately $25/t for September and October 2024 sales, sources informed BigMint. Following the revision, the effective price stood at around $530/t, or VND 13,300,000/t for the southern region, excluding VAT.
Additionally, the world's top steel manufacturer, Baosteel, has reduced HRC prices by RMB 100/t ($14/t) m-o-m for September 2024 sales, continuing the downtrend seen in August. Prices of hot-dip galvanised and electro-galvanised steel have also been reduced by RMB 100/t ($14/t).
3. Market participants remain cautious amid China's declining prices: Chinese HRC export offers decreased following the decline in SHFE HRC futures. China's SHFE HRC futures fell sharply by RMB 229/t ($32/t) w-o-w to RMB 3,217/t ($449/t) against RMB 3,446/t ($480/t) last week. However, the same remained stable d-o-d.