Hoa Phat cuts HRC prices to compete

Posted on 22 July 2021

Vietnam’s Hoa Phat Group has reduced domestic prices for its new hot rolled coil allocations by $50/tonne, Kallanish understands.

The mill’s prices for non-skin passed SAE 1006 HRC for September shipment are $920/t cif northern Vietnam, $923/t cif central Vietnam and $925/t cif southern Vietnam. The mill is offering SS400 grade material at $5/t lower.

Hoa Phat’s new prices are acceptable for Vietnamese users, a Vietnamese trader says. “Hoa Phat’s prices are quite low,” another says. The more established Formosa Ha Tinh announced earlier this week a $60/t fall in its domestic HRC prices for September shipment. Its non-skin passed SAE 1006 HRC is tagged at $970/t cfr Ho Chi Minh City and SS400 HRC at $965/t cfr. Trading sources had earlier deemed Formosa’s prices to be high for the Vietnamese domestic market.

On 20 July, a Vietnamese re-roller ordered 10,000 tonnes of Indian SAE 1006 HRC for September shipment at $930/t cfr. This is $10/t higher than a 16 July booking for Indian SAE 1006.

Meanwhile, rumours concerning the export tax on Chinese steel continue to be rife this week. A Chinese trader hears there will be a 10% duty imposed on HRC. He also hears the export rebate on cold rolled coil will be reduced to zero and the 13% tax rebate on galvanized steel will be retained with no adjustment. These changes could be in place by 1 August. “It’s a rumour,” he qualifies.

Another trader says: “No one confirms the duties nor the August date,” he says. Earlier this week, there were rumours that the export tax on Chinese HRC could be 20% and implemented effective 1 September. Dates and values for the tax continue to fluctuate, but no official comment on any tax has yet been released.

Source : Kallanish