Formosa Ha Tinh Steel (FHS), a prominent hot strip producer in Vietnam, has announced its domestic hot-rolled coil (HRC) prices for December and January shipments, mirroring the pricing trends of its competitor Hoa Phat Group. The company has set its non-skin passed HRC prices at VND 13,530 per kilogram (approximately $534 per ton) for orders of 20,000 tons or more, with a tiered pricing system for smaller quantities.
Price Breakdown:
- 20,000 tons or more: VND 13,530/kg ($534/ton) CFR Southern Vietnam
- 10,000 – 20,000 tons: VND 13,530/kg ($538/ton) CFR
- 5,000 – 10,000 tons: VND 13,530/kg ($541/ton) CFR
For the SS400/pipe-making grade HRC, the pricing remains the same, while the SAE 1006 skin-passed HRC is priced $5 higher per ton. These prices reflect a decrease of $8 per ton compared to last month’s official rates. However, in local currency terms, they have increased by VND 160,000 per ton.
Market Activity and Competition:
The announcement follows Hoa Phat’s domestic pricing update at the beginning of November for January/February shipments of non-skin passed SAE1006 or SS400 grade HRC, which was priced at around $534 per ton CFR Southern Vietnam, excluding VAT.
Reports from northern Vietnam suggest that Hoa Phat sold out its domestic allocations for the period, with a reported volume of over 200,000 tons. However, it remains uncertain whether Formosa Ha Tinh Steel will experience the same outcome. One Hanoi trader noted that while FHS is likely to sell its allocation, it is still too early to confirm the exact figures.
With the ongoing price fluctuations and competition from other producers like Hoa Phat, Formosa Ha Tinh Steel’s strategy is one to watch in the evolving Vietnamese steel market.
For LangZo Steel and other industry players, understanding these pricing dynamics in Vietnam’s competitive steel market is crucial for informed decision-making.
