- Hoa Phat Group cuts HRC prices by $13/t
- China’s HRC offers to Vietnam range-bound
Vietnamese steel giant Formosa Ha Tinh (FHS) reduced its hot-rolled coil (HRC) prices by approximately $21/t m-o-m for March 2025 sales. Following this adjustment, FHS’s HRC prices (SAE1006, skin-passed) ranged at $494-506/t CIF Ho Chi Minh City (HCMC) depending on the quantity booked, as compared to $515/t CIF HCMC a month ago. The company revised prices owing to weak market conditions following the Tet holidays in Vietnam and a substantial decrease in tags of competitors, both domestic and global.
Key factors
1. Competitors’ HRC offers decline: Hoa Phat Group, the leading industrial manufacturing group in Vietnam, cut its monthly HRC (SAE1006, non-skin-passed) prices by around $13/t for April-May 2025 shipments. Post-revision, prices stood at approximately $506/t or VND 12,840,000/t for the southern region, excluding VAT.
2. Imported HRC offers remain range-bound: China’s HRC export offers to Vietnam remained range-bound in February, with offers hovering at around $485/t HCMC. China’s steel industry is facing a supply-demand imbalance, with high mill utilisation rates and increasing inventory levels leading to a surplus of HRC and weakening export prices.
3. Market stays wary amid falling Chinese tags: China’s Shanghai Futures Exchange (SHFE) HRC futures inched down by RMB 20/t ($3/t) w-o-w from RMB 3,430/t ($469/t) on 5 February 2025. Moreover, on a d-o-d basis, the same edged down by RMB 27/t ($4/t) to RMB 3,410/t ($467/t), against RMB 3,437/t ($470/t) the previous day. As a result, market participants remained cautious.
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