Vietnam-based Formosa Ha Tinh Steel has increased finished flat and long steel prices for August deliveries by $5-25/mt from July shipments. Prices increased in keeping with the trends in the global HRC market, mainly supported by demand from Chinese importers.
The mill, however, kept its prices unchanged for some grades as it awaits clarity on end-user demand.
The company has hiked its finished steel offers for a second successive month. For June shipments, the steelmaker had stayed away from releasing its prices officially amid a sharp drop in spot market prices on the back of COVID-19 outbreak.
According to a Davis Index source in the mill, revised base prices for cold and hot-rolled flat steel would be at $460-465/mt cif Vietnam for August shipments. Prices for cold and hot-rolled steel non-skin pass remain unchanged at $455-460/mt cif.
Offers for HRC (SAE 1006) are at $455‑465/mt cif, up by $25/t from the prior month while those for HRC used in pipe making and HRC (SS 400) increased to $450‑455/mt cif from $430/mt cif in the prior month. Prices for tube material and general coils were at $450-455/mt cif Davis understands.
Formosa’s prices for wire rod remained unchanged. Price for low carbon wire rod was around $486/mt cif.
Export offers bullish
Chinese HRC export offers were at $460-470/mt cfr Vietnam, up by $10-20/mt from a month earlier. Indian HRC exporters held offers for HRC at around $445/mt cfr for August shipments, up from $425-435/mt cfr Vietnam a month ago. Vietnamese buyers accepted levels of $440-445/mt cfr for August shipment from Indian suppliers.
HRC suppliers from Japan and South Korea also increased offers from the prior week by $10/mt following a global trend. But with a recent decline in Chinese futures and slowed demand, Vietnamese HRC importers expect prices to soften in the near term. Japanese and South Korean sellers could also lower their prices
Mills in Vietnam have slowed production awaiting clarity on market direction.