Vietnam: Imported HRC offers decline w-o-w amid competitive domestic prices

Imported hot-rolled coil (HRC) offers from China to Vietnam fell w-o-w amid drop in domestic HRC prices. Vietnamese steel major, Hoa Phat, has reduced HRC prices by $11-15/tonne (t) for end-May to early-June 2024 sales, informed sources. The price cuts follow a similar move by Formosa Ha Tinh Steel (FHS) earlier this week.

• Chinese HRC (SAE1006) offers were heard at $575-585/t CFR, against previous offers at $590-595/t CFR seen last week.
  
  
• Indian HRC indicative offers are around $605-610/t CFR HCMC.
  
  
• Moreover, no offers were heard from Japan, Russia and South Korea this week.
  
  

Hoa Phat reduces monthly HRC prices m-o-m: Hoa Phat has reduced monthly HRC (SAE1006, non-skinpass) prices for May-June, 2024 sales by $10-15/t m-o-m. Post revision, effective prices are at VND 14,690-14,720/kg or $596-597/t CIF HCMC (southern region) against previous price of VND 14,852/kg ($610/t) excluding VAT. The company dropped prices amid competitive domestic prices, for instance Formosa Ha Tinh (FHS) is offering discounted HRC offers (SAE1006 / SS400, non-skin pass) for March-April, 2024 shipment, prices are ranging at $598-611/t CIF Ho Chi Minh depending upon the quantity of the shipment, this follows previous price cuts of $45/t in February, 2024.

Chinese HRC futures remained range-bound w-o-w: Chinese SHFE HRC futures (May 2024 contracts) remained range-bound this week at RMB 3,873/t ($538/t). Moreover, on a d-o-d basis, futures inched down by RMB 37/t ($5/t) on 4 March 2024 against RMB 3,910/t ($543/t) on 1 March 2024. With low domestic demand, HRC futures saw mixed trends post-CNY holidays.

Outlook:

Global steel market sentiments are low post-Lunar New Year holidays. Moreover, price cuts by major steelmakers like Hoa Phat and Formosa Ha Tinh in Vietnam have further dropped sentiments. In addition, rising steel inventories in China further indicated a sluggish market.