Posted on 07 Jun 2023
Vietnam's Hoa Phat Dung Quat has reduced its price for new domestic allocations of hot rolled coil for July shipment, Kallanish notes. The producer's latest price is around $40/tonne lower than last month. Weak domestic demand continues to drag on market sentiment.
Its non-skin passed SAE1006 or SS400 grade HRC has been set at the equivalent of VND 13,430/kg, or around $570/t, cfr Ho Chi Minh City (HCMC), down from VND 14,360/kg last month. The company’s HRC prices to northern and central Vietnam are currently each listed at VND 13,400/kg. These prices are for July shipments and exclude VAT.
"The galvanized steel market is very bad. Prices keep falling because demand is very low," a Hanoi trader says. He is uncertain if users will accept the mill's new prices.
Offers of SAE 1006 HRC from China in Vietnam have firmed because of the rally in Chinese steel futures. Offers for SAE 1006 HRC from the smaller and lower-tier mills are prevailing at $565-570/t cfr, while the large and higher-tier mills are offering at around $30/t higher, trading sources say. A popular mill's offer for SAE 1006 base grade HRC is currently at $590/t fob China, with freight estimated at $8-9/t.
Deals for non-China-origin SAE 1006 HRC in the country were heard taking place in the past two weeks at around $570/t cfr, Vietnamese and Chinese traders report. A deal for 40,000 tonnes of Taiwanese material was booked and also for 30,000t of Indian material. At that time, other Vietnamese strip producer Formosa's lowest price for HRC was set at $580/t cif. "They [Formosa] give specific discounted prices depending on order quantity," a Hanoi trader notes.
Source:Kallanish
