- Competitor Hoa Phat cuts HRC tags by $11/t m-o-m
- Weak domestic demand continues, pressuring prices
Vietnamese steel giant Formosa Ha Tinh (FHS) has reduced its hot-rolled coil (HRC) prices by approximately $11/tonne (t) m-o-m for August 2025 sales. Following this adjustment, FHS’s HRC prices (SAE1006, skin-passed) ranged within $497-507/t CIF Ho Chi Minh City (HCMC), depending on the quantity booked, as compared to $513/t CIF HCMC a month ago. This decline in HRC prices could be attributed to sluggish demand and competitive pricing from domestic players such as Hoa Phat.
Market updates
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 $11/t m-o-m for August shipments. Post-revision, prices in southern Vietnam were at approximately $502/t or VND 13,152,656/t against $513/t, excluding VAT.
2. Vietnam’s steel imports drop m-o-m: Vietnam’s steel imports in June stood at 1.16 million tonnes (mnt), dropping by 10% against 1.29 mnt a month ago. Moreover, the same dropped by 9% from 1.28 mnt a year ago.
However, China’s steel exports to Vietnam inched up by 8% to 757,057 t in June as compared to 702,586 t in May.
3. Chinese SHFE futures increase w-o-w: HRC futures on the Shanghai Futures Exchange (SHFE) for October 2025 increased by RMB 31/t ($4/t) w-o-w to RMB 3,193/t ($445/t) as compared to RMB 3,162/t ($440/t) a week ago. Moreover, the same edged up by RMB 6/t ($1/t) from RMB 3,187/t ($444/t) a day ago.
Outlook
Vietnam’s HRC market is likely to remain under pressure in the near term amid weak demand. The m-o-m increase in Chinese imports to Vietnam may also emerge as a significant concern.
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