- Formosa Ha Tinh cuts HRC prices by $12/t amid rising local competition.
- Baosteel maintains stable pricing
Vietnamese steel giant Formosa Ha Tinh (FHS) has reduced its hot-rolled coil (HRC) prices by approximately $12/t for June 2025 sales. Following this adjustment, FHS’s HRC prices (SAE1006, skin-passed) are within the range $508-518/t CIF Ho Chi Minh City (HCMC) depending on the quantity booked, as compared to $525/t CIF HCMC in March. This decline in HRC prices is driven by subdued demand and increased competition from domestic producers like Hoa Phat.
Key factors influencing prices
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 $8/t for June shipments. Post-revision, prices are at $515/t or VND 13,315,724 /t against $517-$523/t for the southern region in May, excluding VAT.
Moreover, the world’s top steel manufacturer, China’s Baosteel, has rolled over HRC prices for June sales, marking the third consecutive month of stability. Additionally, hot-dip galvanised steel prices also remained unchanged. This stability is partly attributed to the holidays and mixed trends in SHFE HRC futures.
2.SHFE shows downturn m-o-m: China’s Shanghai Futures Exchange (SHFE) HRC futures decreased by RMB 21/t ($3/t) w-o-w to RMB 3,226/t ($448/t) from RMB 3,247/t ($451/t) a month ago. However, d-o-d, prices inched up by RMB 36/t ($5/t) as compared to RMB 3,190/t ($443/t) yesterday.
Outlook
In the near term, persistent weak demand and stable prices from major players like Baosteel will likely keep Vietnam’s HRC prices rangebound in the near term. Moreover, Formosa’s recent price cut points to subdued demand with increased local competition from Hoa Phat.
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