Vietnam’s steelmakers raised domestic sales prices of hot rolled coils (HRC) for June and early-July shipments in the past couple of days.
- Formosa Ha Tinh increased its prices by $20/t and is now offering HRCs (SAE1006, skinpassed) at $950-955/t CIF Ho Chi Minh City (HCMC).
- Hoa Phat raised its prices by $15/t to $924/t CIF HCMC.
Moreover, the drive towards an increased reliance on domestic procurement is driving the Vietnamese market at present. Hoa Phat recently awarded a contract for a new plant set up for its Dung Quat complex to UK-based Primetals Technologies. The plant comprises two slab casters and a hot rolling mill which will boost the company’s annual production of hot-rolled coils by 5.6 mnt.
Imported HRC market overview: The imported HRC market has remained subdued so far. However, offers are heard to have come under pressure by $10-15/t against last week from especially China.
Vietnam’s finished steel production and sales move up in Q1: Finished steel production in Vietnam increased by around 3.2% in Q1CY22 aggregating to 8.456 mnt as compared with the similar period last year. Furthermore, sales volume grew by 11.9% y-o-y to 8.137 mnt in Q1. Out of the sales volume, exports accounted for 1.821 mnt in Q1, up by 7.7% as per data released by the Vietnam Steel Association (VSA). Also, in March, 2022, sales stood at around 3.123 mnt, up by 21.3% m-o-m, and 2.4% y-o-y.
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