Vietnam’s Formosa Ha Tinh Steel Corporation (FHS) hiked HRC prices for May and early June shipments following a rise in global steel prices which have spiked to a decade’s high. On April 12, the steelmaker raised HRC prices by $145/mt to equivalent levels of $910/mt for shipments scheduled for May and early June.
Despite the hike, prices are just in line with global levels and may rise further if demand persists, believe participants. Vietnamese importers have already purchased Indian HRC at $920-930/mt cfr, which indicates a possibility of prices reaching $1,000/mt cfr Vietnam soon.
FHS hiked wire rod prices by $84/mt from the prior set of prices announced in March.
Global prices bullish
In Europe, HRC prices are charting new highs amid a continued rise in raw material prices. Leading steelmaker ArcelorMittal revised HRC offers thrice in a month. In its latest revision, it hiked HRC prices by €20/mt to €920/mt for domestic sales, offers rose above €940-950/mt in mid-April.
Asian markets follow suit
Asian markets follow the global trend and mills are mulling a hike as the earlier price hike has been absorbed by the market. In China, clarity on the decrease of export rebate on steel products is expected by the end of April. Japanese mills offered HR coils at $1,000/mt to ASEAN and Chinese buyers for June shipments. In India, mills are still offering HRC in the domestic market at Rs5,000/mt below international prices. Mills are likely to raise prices by up to Rs5,000/mt if the COVID resurgence is managed with massive vaccinations and auto sector demand sustains.