Vietnamese leading HRC supplier, Formosa Ha Tinh Steel (FHS) has rolled over flat steel prices for the domestic August shipments keeping them unchanged from July shipments.
For July shipments the company had raised prices by around $120/mt following global trends in June. Trade prices for HRC (SAE 1006, skin pass) will be flat at $1,020-1,040/mt cif equivalent. For July shipments, Formosa hiked HRC offers with support from Chinese domestic steel and high global iron ore prices.
Prices rose for three successive months by $45/mt in May, $145/mt in June, and $120/mt for July deliveries, to pause rally for August shipments. But many anticipate global HRC prices to remain elevated on robust demand recovery after the COVID-19 reemergence in many countries and rising auto sales.
Another flat steel supplier in Vietnam, Hoa Phat Group lowered HRC prices by around $45/mt for August shipments from July shipments at equivalent of $975-980/mt cif depending on the region to match Chinese offer prices.
Global HRC to stay firm
In China, Baoshan Iron and Steel (Baosteel) kept its domestic prices of various finished flat steel products unchanged for July shipments. Following suit, Formosa steel and Indian HRC makers and other supplier countries in Asia are likely to keep their asking rates for HRC at around $1,000-1,020/mt cfr basis.
In the US, HRC prices are above $1,760-1,780/mt or $1,600-,1620/nt fob mills. Bullish demand and closure at automaker plants amid chip shortages could push offers above $1,850/mt cfr or nearing $1,700/nt fob. HRC prices in Asia and China thus are expected to stay firm for a couple of months more.