Vietnamese hot-rolled coil producer Hoa Phat on Oct. 1 raised its domestic offers by $32 per metric ton, in line with the price rally in China after slashing prices for four consecutive months.
The steelmaker is offering SS400 and SAE1006 coils without skin pass at Dong 13,500/kg, or $545/t CIF North and Central Vietnam for December shipment. Its offer to South Vietnam stood at Dong 13, 530/kg or $547/t CIF.
The prices do not include value added tax. Market participants said the mill’s price hike was expected considering the price rally in China, which followed the unveiling of a slew of measures by the Chinese government in a bid to revive the economy.
“I think their latest offers are very reasonable considering the pace Chinese steel prices were rising before the holidays,” a Vietnam-based trader said.
A second Vietnam-based trader said buyers would likely hold off purchases until China returns from the Golden Week holidays on Oct 1-7.
“It is not easy for local buyers to make buying decisions when prices are too hiked,” the trader said. Platts, part of S&P Global Commodity Insights, assessed SAE1006 HRC at $510/t CFR Vietnam on Oct. 1, up $40/t month on month.
