Posted on 05 Sep 2024
Vietnamese hot rolled coil producer Hoa Phat Dung Quat has lowered its monthly domestic prices in tandem with a weak and stagnant market, Kallanish notes.
Hoa Phat lowered its list sales prices by around $13/tonne for its latest domestic HRC allocations on 4 September. The company's quotes for non-skin passed SAE1006 or SS400 grade HRC, due for delivery in October and November 2024, have been set at the equivalent of around $514/t cfr southern Vietnam, excluding VAT.
In VND terms, the latest price of VND 12,870/kg to southern Vietnam is at VND 430/kg lower than last month’s official monthly domestic value set on 1 August. The mill’s quotes to northern and central Vietnam are now at VND 12,840/kg.
Some trading sources say that they think that Hoa Phat would need to lower prices to close deals as offers for Chinese HRC are much lower. “I think they need to give a $10/t discount,” a Hanoi trader says Wednesday. He notes that certain Chinese suppliers are willing to sell Q195/Q235 grade HRC for shipment by second-week October as low as $460/t cfr now. Offers were at $475-480/t cfr Vietnam last Friday.
Offers for SAE 1006 HRC from China are currently heard at $470-475/t cfr, and SAE1006 HRC from a certain Chinese mill is also offered lower at $468/t cfr.
Some trading sources think that Vietnamese importers are getting wary to book Chinese HRC for October shipment. There are market concerns that retroactive anti-dumping duties could apply if results of a pending trade investigation in Vietnam against Chinese HRC are released year-end.
Source:Kallanish
