Hoa Phat reduces domestic prices for hot-rolled rentals

Vietnam's Hoa Phat Dung Quat has reduced the price of new domestic hot rolled coil shipments for May/June deliveries. This is coupled with weaker domestic and regional HRC markets.

An unsurfaced SAE1006 or SS400 HRC was set at the equivalent of VND16,030 per kg (about $680 per tonne) in Ho Chi Minh City (HCMC), up from VND16,330 per kg last month. The company's prices for hot-rolled products to northern and central Vietnam are currently VND16,000 per kg. These prices are for May/June deliveries and do not include VAT.

Weak domestic demand continues to put pressure on the market. SAE 1006 and SS400 HRC users will find it difficult to accept Hoa Phat's advertised prices. “Now the market is very quiet. Chinese HRC prices are low,” says an HCMC trader.

Offers for SS400 and SAE 1006 hot-rolled steel from China have once again fallen sharply and are priced at US$625/tonne francs in Vietnam and US$660/tonne francs respectively, Vietnamese trade sources say. Just last Friday, suppliers of Chinese hot-rolled coil raised their offers from these levels by $10-15/t. “Now everything is down [again],” says another HCMC trader.

A small amount of 3,000 tons of Chinese HRC SAE 1006 was sold last week at $660/t fob, equivalent to $670/t in Vietnam. There were also rumors of deals for HRC SS400 from China at around $630/t CFR early last week.