Vietnam: Formosa increases HRC prices by $90-95/t for April sales

Vietnamese steel major Formosa Ha Tinh has increased its hot rolled coil (HRC) prices for domestic sales by $90-95/tonne (t) for April, SteelMint learned from reliable sources. After revision, the offers are as follows:

• SAE1006 (skinpass) stands at $845/t CIF Ho Chi Minh
  
  
• SAE1006 (nonskin pass) stands at $840/t CIF Ho Chi Minh
  
  
• SS400/ pipe making grade at $835/t CIF Ho Chi Minh
  
  

Vietnam-based end-users were eagerly waiting for the price revision from domestic mills as imported HRC offers had risen sharply.

Why this price hike?

• Rise in imported HRC offers: Most of the exporting countries have been increasing their offers lately since mid-Jan'22. For instance, the export offer from Indian mills dipped to $745/t CFR levels and then went on a continuous rise to the current week's levels of $930/t CFR. Thus, offers from India have risen by around $150/t since mid-Jan'22. Japan's Nippon Steel Corporation (NSC) has raised its HRC prices for April shipment by another $50-100/t over its February prices, SteelMint learnt from sources. This is NSC's hike for the second consecutive month, taking the increase to over $200/t. Post-hike, Nippon Steel will supply HRCs to Southeast Asia at $900-950/t.
  
  
• Preference for domestic HRC high: The preference for domestically-produced HRCs remains high in the country. Since imported HRC prices were rising consistently, buyers preferred domestic over imported. For instance, Hoa Phat's HRC sales in Jan'22 increased by 5% to 228,000 t contrasted against 217,000 t in Dec'21.
  
  

The steel major Formosa has an annual crude steel production capacity of 8 mn t.