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Vietnam: Formosa Ha Tinh raises HRC offers for July 2024 sales

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BigMint Bureau

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13 May 2024, 16:17 IST

Vietnam: Formosa Ha Tinh raises HRC offers for July 2024 sales

Vietnamese steel major Formosa Ha Tinh has increased hot rolled coil (HRC) prices by $15/tonne (t) m-o-m for July 2024 shipments. Prices rose amid increased imported HRC offers as well as higher quotes from both domestic and global competitors. Subsequent to the revision, prices of HRCs (SAE1006, skin pass) stand at around $600-610/t CIF Ho Chi Minh City (HCMC). Meanwhile, non-skin pass coils are at around $595-605/t CIF, sources informed BigMint.

Factors behind improved HRC prices

1. Increased imported HRC offers:

Chinese HRCs (SAE1006) monthly average prices rose by $10/t to $565/t CFR HCMC, against $555/t CFR HCMC in Apr'24. Offers for HRCs (SS400) stood at around $555-560/t CFR HCMC in May'24.

Indian mills hold HRC export offers due to limited export allocations and higher domestic realisations.

2. Hike in domestic and global prices: Formosa has taken a strategic decision to raise prices as other competitors of domestic and international market have increased their HRC prices. Formosa's domestic competitor Hoa Phat has increased its monthly HRC (SAE1006, non-skinpassed) prices by $27/t for July'24 sales, sources informed BigMint. Post-revision, effective prices stand at $580/t or VND 14,670,000/t for the southern region, excluding VAT. While, China's Baosteel has increased HRC prices by RMB 50/t ($7/t) m-o-m for June'24 sales, according to BigMint's sources. The company has increased prices following the rise in Shanghai Futures Exchange (SHFE) futures post-Labour Day holidays.

3. Chinese prices up post-Labour Day holidays, low inventory: China's HRC export offers rose post-Labour Day holidays amid drop in China's steel inventory. In addition, Chinese exporters are trying to quote on the higher side in the absence of other competitive origins like Japan and India. Moreover, market sentiments in Vietnam are also improving, sources informed BigMint.

In addition, China's Shanghai Futures Exchange (SHFE) remained volatile, rising in early-May post-holidays. However, the same fell by RMB 21/t ($3/t) to RMB 3,797/t ($526/t) on 10 May 2024 as compared to RMB 3,818/t ($528/t) on 30 April 2024.

4. Vietnam's steel exports rise m-o-m: Vietnam's steel exports rose to 923,271 tonnes in March against 840,145 tonnes in February.