Rising iron ore prices were effective behind this price increase. The company's offers for SAE1006 or SS400 quality HRC to be delivered in March and April are set at approximately $640/ton cfr South Vietnam equivalent, excluding VAT. The equivalent of this price in VND is 15,630 VND/kg, which is 950 VND/kg higher than the previous price.
It was stated that prices may be $5-10/ton higher than domestic market expectations. It was stated that the increase in raw material prices was the main factor behind the increase in hot coil prices, especially since they increased faster than steel.
Latest prices for Hoa Phat are thought to be $10-20/ton higher than the acceptable price level. A steel producer in South Vietnam stated that it would be difficult to sell at current prices and that he thought a reasonable price would be $620-625/t cfr or $630/t cfr at most.
Another Vietnamese HRC producer, Formosa Ha Tinh Steel (FHS), is also likely to increase its prices.
In mid-December, FHS set the price of SAE 1006 HRC in Vietnam at approximately $625-637/ton for January/February shipment. It was stated that Hoa Phat's HRC prices are generally $10-15/ton lower because "FHS quality is different."
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