Vietnamese steelmaker Formosa Ha Tinh Steel (FHS) has lowered its HRC domestic sale prices by $60/mt for the September and remaining August shipments. Earlier, the steelmaker had kept its prices unchanged for August deliveries from July. The company lowered prices to match international trends. The mill is optimistic for the fourth quarter.
For September, prices for HRC (SAE 1006, rerolling skin pass) will be around $970-980/mt cif Ho Chi Minh, while SS400 grade HRC is at $965/t cfr, down $60/mt from August shipment prices.
Amid a sharp rise in COVID-19 cases, steel demand in Vietnam has been affected. It has impacted fresh orders in the domestic markets, deliveries, and transportation of products.
Furthermore, Russia has levied around 15pc export taxes on steel products applicable from August 1. Sellers from Russia flooded overseas markets with competitively priced steel before the taxes become applicable. Weak demand in the domestic market pressured export prices from India. Vietnamese HRC sales thus dropped on competitive offers from other markets.
Earlier, another flat steel supplier in Vietnam, Hoa Phat, had lowered HRC prices by around $45/mt for August shipments from July shipments at the equivalent of $975-980/mt cif depending on the region, to match Chinese offer prices.
In China, Baoshan Iron and Steel (Baosteel) kept its domestic prices of various finished flat steel products unchanged for August shipments. In the US, HRC prices are above $1,990-2,020/mt or $1,820-,1850/nt. HRC prices in Asia and China could gain some support for a couple of months.