Formosa Ha Tinh Steel (FHS) has kept its monthly prices for hot rolled coil (HRC) products unchanged for September shipment, according to industry sources.
On July 9th, FHS released offers for non-skin passed SAE 1006 grade HRC at the equivalent of $560-572/tonne cfr Ho Chi Minh City, depending on tonnage. Prices for SS400/pipe-making grade HRC remain the same. The mill's skin-passed SAE 1006 HRC is set at $5/t higher. These latest prices are identical to August-shipment values.
Vietnamese trading sources suggest that the Vietnamese producer may need to offer discounts to buyers due to the weakening market. Chinese HRC prices have dropped notably, with offers down to lows of $520-530/t cfr, depending on grade. "I think they have to give a $10 discount," a Hanoi trader notes.
FHS has also set an export price for HRC for September shipment at $555/t fob for ASEAN markets and at $542/t fob for markets elsewhere.
Meanwhile, Guang Ching De Metal Rolling, an HRC project located in Indonesia's Morowali Industrial Park, began producing commercial quality HRC on Tuesday. The main shareholders of the project are state-owned Guangxin (51%), Tsingshan (26%), and Dexin (25%).
The mill aims to produce 2 million tonnes/year of carbon steel and 1.5m t/y of stainless steel. It could make up to 4m t/y of coil products, depending on strip thickness, informed sources say. The rolling mill will receive slab feed from its project owners.