Vietnam: Formosa Ha Tinh rolls over HRC prices for November sales

Vietnam's leading steel mill Formosa Ha Tinh (FHS) has rolled over its monthly hot-rolled coil (HRC) offers for November 2022 sales. Subsequent to the revision, the effective price of skin-passed (SAE 1006) stands at $610/t CIF Ho Chi Minh.

Current imported HRC market scenario:

Indian steel majors have started indicating prices at around $630/t CFR levels, up by $20/t from previous week's $610/t CFR Vietnam. Meanwhile, a few mills stay withdrawn from the market.

Chinese HRC (SAE1006) prices are heard at $610/t CFR, unchanged over the week, while SS400 grade prices are at around $570/t CFR levels. Prices have fallen on m-o-m basis. However, the recent energy crisis in the EU has provided some price support to market offers.

Market conditions in Vietnam

1. Global steel producers : Global steel producers have either increased or kept their offers unchanged for HRC. For instance, China's Baosteel kept its monthly HRC prices unchanged due to subdued demand in the domestic market and Tokyo Steel has also rolled over steel prices for October sales. However, ArcelorMittal (AM) has raised HRC prices by $50/t for October sales.

2. Improvement in domestic sales: Vietnamese integrated steel major Hoa Phat's steel sales registered a rise of 19.3% m-o-m to 628,000 tonnes (t) in August compared with 526,000 t in the previous month. Sales volumes have majorly improved due to increase in consumption from the construction industry.