Vietnamese producer Hoa Phat steel has raised HRC sales prices by $75/mt from the last month’s prices. The steelmaker decided to hike HRC offers for domestic and export shipments scheduled for May and early-June. Hoa Phat’s HRC offers were lower compared to the global trends and the company decided to narrow the gap by raising prices, said company officials.
Following a sharp price hike announced by Formosa steel, the leading HRC maker in Vietnam, it was expected that Hoa Phat would announce a price hike given the uncertainty around Chinese production curbs and export rebate on HRC. Prices have still not increased as expected by participants. Domestic demand is slow amid easing supplies, this has held prices from rising sharply.
The company announced revised base prices for SAE 1006 and SS400 grade HRC for May and early-June shipments at $760-765/mt cif Vietnam varying as per the location. Prices in the Southern region are generally $5/mt over the northern region.
HRC bullish in US, EU
In the US domestic market, HRC prices have hit above $1,300/st ex-works Midwest. Amid active auto demand, prices have increased further supported by tight supply. Higher steel prices are also supporting ferrous scrap prices in the US market despite weak global cues.
Vietnamese mills opted for competitively priced Indian HRC available at shorter transit times. Offers from Indian mills, however, have increased above $800-810/mt cfr Vietnam from the prior bulk deals reported at $780/mt cfr Vietnam last week, said sources to Davis Index.
Demand for HRC import from China has remained limited while domestic prices continued their uptrend following a massive gap of approximately $500/mt between Chinese and international HRC prices.