Posted on 14 Jun 2024
A Vietnamese producer’s price cut for hot rolled coil is reflective of the current weak market in the country, Kallanish understands.
Formosa Ha Tinh Steel (FHS) released offers for non-skin passed SAE 1006 grade HRC for August shipment officially at the equivalent of $560-572/tonne cfr Ho Chi Minh City, depending on tonnage. The price is the same for its SS400/pipe-making grade HRC. The mill's skin-passed SAE 1006 HRC is set at $5/t higher. Prices are at around $15/t lower than the mill's most recent July-shipment prices.
The prices are realistic considering the current market, and good for buyers and FHS, a Hanoi trader says. However, it remains hard to sell HRC and coated coil in export markets, he says. “There are quota issues in the EU, and the Mexico market, which was good before, has slowed down. Many cheap cargoes from China are also being offered to ASEAN including Malaysia and Indonesia.”
The FHS sales price of $560/t cfr is competitive but only big-volume customers can get this price, a Vietnamese trader says. The price of around $560/t cfr (VND 14,215/kg) applies to purchases of a minimum of 20,000 tonnes.
Chinese 2mm upwards SAE 1006 HRC offers have been hovering at $555-560/t cfr Vietnam in recent weeks.
Source:Kallanish
