FHS announced on Friday that its latest monthly domestic hot rolled coil prices increased by approximately $22/ton. The factory has set the price of skin-pass product from SAE 1006 HRC for March/April shipments at approximately $647-655/ton Vietnam, depending on tonnage. The lowest price, $647/ton CFR, is valid for reservations of 20,000 tons and above. SS400 and pipemaking grades are also stable at $647-655/ton, while the price of surface grade SAE 1006 HRC is $5 higher.
Despite the increase in prices of FHS, local users and traders still consider the prices to be high. A trader in Hanoi stated that FHS should reduce its prices by at least $10-15/ton. The lower offers received for Chinese origin HRC also reflect the imbalance in the market. China's SAE 1006 hot rolled coil offers are lower than those of Vietnamese origin products.
On the other hand, another local producer, Hoa Phat Dung Quat, sold a total local HRC allocation of 100,000 tons at $640/t cfr Vietnam about a week ago. However, these sales occurred before previous market declines.
Market observers state that the weakness in Chinese steel and iron ore markets has affected Vietnamese HRC prices. Despite the decrease in prices, local producers' demands for price increases cause discussions among market players. Players think that the course of the market in the coming period will be shaped depending on changes in global steel demand and supply.
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