Recent Developments in The Steel Market

Due to the continuous increase in the infection rate of new crown pneumonia, Vietnam has adopted closed measures, steel demand has plummeted, the hot rolled coil market has been in trouble, and prices have fallen rapidly.

Formosa Plastics Ha Tinh Iron and Steel Co. announced on September 11 that it would lower the domestic hot-rolled coil price in Vietnam for the November shipping schedule by US$30-35/ton. The price of unfinished SAE 1006 re-rolled hot-rolled coil is US$925-930/ton, while the prices of finished SAE 1006 hot rolled coil and SS400 hot-rolled coil are about US$5/ton higher and US$5/ton lower, respectively. Compared with Ho Chi Minh City, the sales price of Formosa Plastics’ HRC to Haiphong is 5 USD/ton lower. Formosa Plastics also reduced the price of its domestic snails in Vietnam by US$20/ton.

Under the impact of Russian imported HRC resources, another steel producer, Hoa Phat (Hoa Phat), stated that the domestic HRC price in Vietnam fell below US$900/ton in November. Russia’s offer for Vietnam’s SAE 1006 hot rolled coils is only US$860-870/ton CFR Vietnam. According to Mysteel, Russia’s low-cost resources have swept Asia recently, and a Korean trader recently ordered Russian hot-rolled coils for December shipments at a price of US$820/ton fob.