Vietnam: Formosa Ha Tinh reduces HRC offers for Aug'25 sales

• Competitor Hoa Phat cuts HRC tags by $11/t m-o-m
  
  
• Weak domestic demand continues, pressuring prices
  
  

Vietnamese steel giant Formosa Ha Tinh (FHS) has reduced its hot-rolled coil (HRC) prices by approximately $11/tonne (t) m-o-m for August 2025 sales. Following this adjustment, FHS's HRC prices (SAE1006, skin-passed) ranged within $497-507/t CIF Ho Chi Minh City (HCMC), depending on the quantity booked, as compared to $513/t CIF HCMC a month ago. This decline in HRC prices could be attributed to sluggish demand and competitive pricing from domestic players such as Hoa Phat.

Market updates

1. Competitors' HRC offers decline: Hoa Phat Group, the leading industrial manufacturing group in Vietnam, cut its monthly HRC (SAE1006, non-skin-passed) prices by around $11/t m-o-m for August shipments. Post-revision, pricesin southern Vietnam were at approximately $502/t or VND 13,152,656/t against $513/t, excluding VAT.

2. Vietnams steel imports drop m-o-m: Vietnam's steel imports in June stood at 1.16 million tonnes (mnt), dropping by 10% against 1.29 mnt a month ago. Moreover, the same dropped by 9% from 1.28 mnt a year ago.

However, Chinas steel exports to Vietnam inched up by 8% to 757,057 tin June as compared to 702,586 t in May.

3. Chinese SHFE futures increase w-o-w: HRC futures on the Shanghai Futures Exchange (SHFE) for October 2025 increased by RMB 31/t ($4/t) w-o-w to RMB 3,193/t ($445/t) as compared to RMB 3,162/t ($440/t) a week ago. Moreover, the same edged up by RMB 6/t ($1/t) from RMB 3,187/t ($444/t) a day ago.

Outlook

Vietnams HRC market is likely to remain under pressure in the near term amid weak demand. The m-o-m increase in Chinese imports to Vietnam may also emerge as a significant concern.