Vietnam Formosa River Static Steel Plant recently raised the price of hot rolled coil

Release time：May 16, 2019 From：admin

In China's domestic spot and futures prices, Formosa Ha Tinh Steel (FHS) , the only hot rolled coil producer in Vietnam , has raised its offer for hot rolled coils and hot rolled Asian markets earlier this week. The price of the coiled plate has strengthened.

SAE 1006 hot rolled coil FOB China reference price has been stable since last Thursday, still reported at 534 US dollars / ton this Monday; the same grade hot rolled coil CFR Southeast Asia offer slightly increased to 544 US dollars / ton, It rose slightly by $3/ton last Thursday.

The main factor in the price trend in the market is the price policy just announced by Formosa Plastics Steel Plant. It is reported that only a few buyers have booked a small number of hot rolled coils on Monday. The reason why local buyers chose to purchase from Formosa Hejing Steel Plant is because the steel mill is allowed to settle in local currency, and the amount of resources required by buyers per month can be guaranteed.

A trader based in Vietnam said that even if it is purchased from Formosa Plastics, the buyers are still pursuing the principle of on-demand purchase, and will not take the goods.

In view of the weak domestic demand, some buyers originally hoped that the price of the Formosa Hejing Steel Plant would be flat in June. However, the mill chose to increase the domestic price of hot rolled coils shipped in June by $5/ton. Taking the CIF price of CIF shipped in June as an example, Formosa Plastics has increased its benchmark SAE 1006 and tempered hot rolled coil prices to US$556/ton, while unfinished HRC offers Then reported at $ 551 / ton; SPHT3, S235JR, SG255, SS490 grade HRC prices have increased to $ 576 / ton. At the same time, the price of commercial grade SS400 hot rolled CFR Vietnam was $546/ton after this price adjustment.

“On Saturday, the downstream coating and plating plant in Vietnam has just lowered the price of the ex-factory table by US$11/ton, which indicates that the downstream market has not accepted the price increase of Formosa Plastics Steel Plant.” One in Vietnam Traders commented, "The buyer may ask the Formosa Plastics Steel Factory to cut prices next month."

At the same time, Indian-made HRC, which was shipped at the end of May and early June, is currently the most competitive market at the price of US$545/ton, while the hot-rolled offer for shipments from China's steel mills remains basically unchanged. , still at 555-560 US dollars / ton. Considering that Vietnam and China will enter the holiday on April 29th - May 1st and May 1st - 4th respectively, the time window for buyers to place orders from China this week is very narrow.