- The company raised HRC offers by around $140-145/t m-o-m
- Surge in imported HRC offers from major exporting nations
- Baosteel spikes HRC offers for May delivery
- Robust domestic steel demand of Vietnam
Vietnam’s integrated domestic steel manufacturer- Formosa Ha Tinh has today announced its monthly HRC offers for June deliveries.
The company sharply raised HRC price by around $140-145/t on higher HRC offers from major exporting nations. Last month the company raised its HRC offers sharply by $45/t monthly for May deliveries.
Current offers of FHS
- HRC (SAE 1006, skin pass) is being offered at around $910-912/t CIF basis. The last offer was at a $770-775/t CIF basis.
- HRC (non-skin pass) offer stands at $905-907/t CIF basis against the last offer of $765-770/t CIF basis.
Key indicators driving steel prices in Vietnam-
1. Increase in imported HRC offers from China- Chinese mills have increased prices by about $50-60/t to $910-920/t CFR Vietnam in contrast with $860/t a week back. In addition to this, possible export rebate cuts and surging marine-freight costs were the major drivers of higher prices. On monthly basis, imported Chinese HRC offers for Vietnam have elevated by $100/t m-o-m basis.
2. Indian mills are actively exporting HRC to Vietnam- Major Indian steel mills have sharply raised HRC export offers to $940-950/t CFR basis for Jun shipments. Mills raised offers on higher domestic prices on improved demand. Last week an Indian steel producer had booked around 30,000-50,000 t HRC for export at $925/t CFR Vietnam basis for May-Jun shipment.
3. Premium offers from Japan/South Korea- A leading Japanese steel producer is targeting $1,000/t CFR Vietnam basis for HRC. However, Vietnam importers are unlikely to book HRC at higher offers, SteelMint understands.
4. Baosteel sharply raised HRC prices- China’s leading steelmaker- Baosteel has released its flat steel product list prices for May ’21. As per the company’s official publication, the list prices for HRC have been increased by RMB 400/t ($61).
5. Nation’s steel industry expects global consumption to grow by 4.1% this year- According to the Vietnam Steel Association (VSA), global steel demand is expected to increase by 4.1% this year amid a recovery in developed markets, after a decline of 2.4% last year. The steel consumption of the country is expected to rise by 8% due to active infrastructure investment, the recovery in real estate market, growth in the manufacturing industry and support foreign investment.
Outlook- With the rising international prices and robust growth in demand, domestic and imported HRC offers are expected to remain high in the near term.
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