Vietnam Hoa Phat leads the market by raising prices

Vietnamese steel producer Hoa Phat has announced a US$30-35/ton price increase for hot rolled coils for its products scheduled for delivery in February and March next year. The move offered the company an opportunity to take the lead in the steel sector. At the same time, Japanese steelmakers Nippon Steel and Maruichi Steel are also expected to raise prices for the first quarter of next year.

China Steel Corporation (CSC) believes that the steel market has successfully recovered and is on a positive trend. However, steel production costs are resisting to fall due to high raw material costs. With iron ore prices exceeding US$130/tonne and coal prices exceeding US$300/tonne, steel mills have to cope with cost increases.

Hoa Phat's price hike move means that the company can strengthen its leadership position in the industry and ensure that other producers it competes with follow in its footsteps.