Vietnam’s flat steel producer Formosa Ha Tinh Steel (FHS) has raised HRC prices for September shipments by $10-15/mt from the last set of prices, said a source to Davis Index. The price hike is applicable for both domestic as well as exports sales.
Formosa had increased August shipments prices by around $20/mt in late June, followed by a $13/mt hike last week for domestic sales. The trend is likely to continue even for September shipments, said traders.
The latest offers for September hot-rolled coil Skin-pass SAE1006 HRC is at around $468/mt cif compared to $455-465/mt cif for August shipments announced last month. Prices of SS400 and pipemaking-grade HRC rose to $463/mt from $450-455/mt cif. Higher grade flat products SPHT3, S235JR, SG255 and SS490 are priced at $496/mt cif and SG295 at $506/mt cif, respectively. The company’s domestic sale prices are marginal negotiable.
Imported HRC prices are trending up in Vietnam fueled by robust finished steel demand in China post the COVID-19 lockdown. Taking cues from higher import prices Formosa could further raise prices for the domestic market. Other Vietnamese mills too might raise their offers this week. Indian HRC exporters are targeting $465-475/mt cfr while Chinese HRC (SAE1006, 2 mm) offers rose to $485-510/mt cfr Vietnam.
High scrap prices
Imported ferrous scrap trades in Vietnam remained relatively slow. Recently, Japanese #2 HMS and HMS 1&2 (50:50) scrap offers rose by JPY1,000/mt for exports to Vietnam, Taiwan and South Korean mills. Trades are now expected in the range of $255-260/mt cfr Vietnam. High raw material prices are expected to keep finished steel prices high.