Vietnamese steelmaker Formosa Ha Tinh (FHS) has hiked its domestic prices for hot-rolled coil (HRC) for new shipments of April and May, buoyed by the healthy demand and positive outlook for HRC.
The steelmaker has revised prices up by $45-50/mt after a gap of nearly two months in which prices remained stable. On March 10, Formosa Steel announced that its base price for SAE1006 HRC for April and May shipments would be equivalent of $765/mt cif Haiphong and $770/mt cif Ho Chi Minh. The price for skin-passed material is $5/t more.
For March shipments, offers for HRC (SAE 1006) were around $710-715/mt fob or $720-725/mt cif. International HRC and iron ore prices have remained high and mills’ asking rates were behind the trend, pushing the steelmaker to revise domestic and export prices on the back of demand recovery from the auto sector.
Imported HRC prices in Vietnam from leading supplier China have remained in the range of $750-800/mt cfr, depending on the origins. For Indian HRC exporters, Vietnamese buyers were bidding at $740-745/mt cfr Vietnam. Domestic HRC prices in India are in the range of Rs54,000-55,000/mt ex-Mumbai.
China mulls cutting export rebate
The Chinese government is mulling a potential cut in export tax rebates for Chinese HRC exports effective April. This has pushed Chinese mills to insist harder on cost declarations in the purchase contracts.
In its domestic market, FHS is offering the same grade in the north of Vietnam at VND17,200/kg ($740/mt) while in the southern region, it is priced at VND17,000/kg ($732/mt), according to Davis Index souces.