Vietnam: Formosa Ha Tinh revises HRC offers for Sep'24 sales
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Vietnamese steel major, Formosa Ha Tinh (FHS), has rolled over HRC prices m-o-m for September 2024 shipments. Subsequent to the revision, prices of HRCs (SAE1006, skin pass) stand at $570-580/t CIF Ho Chi Minh City (HCMC). Meanwhile, non-skin pass coils are at $560-572/t CIF, depending on volumes booked. The company has revised prices owing to current weak market conditions and a substantial decrease in the price of imported Chinese HRC.
Key factors:
1. Imported HRC offers drop by $5/t w-o-w: China's hot-rolled coil (HRC) export offers to Vietnam dropped by $5/t w-o-w to $525-530/t CFR against $530-535/t CFR HCMC. A deal of around 10,000 t of HRCs has been heard concluded at $525/t CFR HCMC for August, 2024 shipment.
2. Hoa Phat reduces HRC prices by around $10/t m-o-m: Hoa Phat has reduced its monthly HRC (SAE1006, non-skinpassed) prices by around $10/t for August, 2024 and September, 2024 sales. Post-revision, effective prices stand at $555/t or VND 14,100,000/t for southern region, excluding VAT.
Moreover, World's top steel manufacturer, Baosteel, has reduced HRC prices by RMB 100/t ($14/t) m-o-m for August, 2024 sales, after keeping prices unchanged in July. The company has lowered prices due to falling SHFE HRC futures prices along with weaker global market demand.
3. Market participants remain cautious amid falling Chinese prices: China's HRC export offers dropped amid declined SHFE HRC futures. China's SHFE HRC futures fell by RMB 56/t ($8/t) to RMB 3,708/t ($510/t) w-o-w against RMB 3,764/t ($518/t). It fell by RMB 26/t ($4/t) against RMB 3,734/t ($513/t) d-o-d.