After China’s Baosteel kept its hot-rolled coil (HRC) price for August, Vietnam’s Formosa Ha Tinh Steel Corporation (FHS) announced to decrease its HRC and wire rod prices yesterday (July 19) by US$60/ton, with delivery in the August-September period.

The recent serve epidemic affected FHS's orders and shipments in Vietnam. In addition, there are many of India and Russia’s low-cost materials in Vietnam. Affected by the above factors, FHS was forced to lower the price this time.

However, China's government reduced the steel output continuously and many steel mills cut production. Russia will also impose export taxes from August 1. The international raw material such as coal and iron have risen more than US$200/ton. Market participants believed the price is supportive and the fourth quarter is still optimistic.