Formosa is further reducing its prices for hot-rolled steel for large orders

Less than a week after its previous price cut for hot-rolled steel, the Vietnamese producer Formosa Ha Tinh Steel has offered further discounts of $7–9/t on hot-rolled steel for large orders. The previous price cut was announced on 3 July. This is according to Kallanish.

According to market sources, the company notified selected buyers of the new reduction as early as last Thursday, although most market participants only became aware of it on Monday.

The price cut applies to hot-rolled steel deliveries to the domestic market for August–September and is valid for large orders of 20,000 tonnes or more. Following the price cut in early July, the mill set prices at a level equivalent to $538/t on CIF South Vietnam terms for consignments of 20,000 tonnes or more.

At the same time, some trading sources claim that the mill’s actual discount is greater — around $12/t. “A price reduction of $7–12/t is enough to attract more orders from major buyers,” notes a trader from northern Vietnam.

As recently as last week, market participants were expecting a further fall in domestic prices, which effectively brought the hot-rolled steel market to a standstill, whilst buying activity remained low.

As reported by GMK Center, US steel producer Nucor raised its spot price for hot-rolled coils by $5 per short tonne from 13 July compared with the previous week. The new offer price stands at $1,135/t.