Hoa Phat has cut its prices for hot-rolled steel for August sales

Vietnamese steel producer Hoa Phat has announced a sharp reduction in prices for hot-rolled coils for the domestic market for August deliveries, according to Kallanish.

The new offer is $34/t lower than last month.

Unfinished hot-rolled coils (SAE1006/SS400) for August deliveries are being offered at a price equivalent to $546/t CFR for northern and central Vietnam, and $547/t CFR for southern Vietnam. Prices exclude VAT.

For large volumes (orders of 20,000 tonnes or more), the company will offer a net price of $535/t CFR Ho Chi Minh City, taking into account volume discounts.

According to one trader, the domestic market is currently sluggish due to the rainy season, with demand remaining low. Vietnam’s export quota to the EU has been reduced, whilst Brazil has slowed its purchases of Vietnamese flat steel. June and July are difficult months for local steelmakers.

The reduction in supply from Hoa Phat has triggered a fall in import prices for hot-rolled steel. Furthermore, the market expects another Vietnamese producer – Formosa Ha Tinh Steel – to also lower prices for new batches of this product shortly.

It should be noted that global prices for hot-rolled coils showed mixed trends in May. On the European market, average monthly offers fell by 2–4%, whilst in China and the US there was a slight increase of 3–4%.