HPG: Domestic HRC Steel Prices Fall on Import Pressure, Hoa Phat Cuts 900 VND/kg
This Aveluro analysis covers HPG on HOSE in the Basic Resources sector. The classified event type is sector sentiment, with negative sentiment and a deterministic market-impact score of 4.0/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Domestic hot-rolled coil (HRC) steel prices in Vietnam have declined as Hoa Phat Group (HPG) and Formosa Ha Tinh cut prices by 900-1,050 VND/kg (34-40 USD/ton) in response to rising imports, particularly from India. The price adjustment follows a surge in Indian supply redirected from the European Union after new trade defense measures took effect in July 2026, intensifying competition in the Vietnamese market.
Key Facts
- Hoa Phat reduced HRC prices for August 2026 delivery by 900 VND/kg (approx. 34 USD/ton).
- Formosa Ha Tinh cut prices for August and September delivery by 1,050 VND/kg (approx. 40 USD/ton).
- Imported HRC SAE1006 from India was offered at about 535 USD/ton CIF Vietnam in early July 2026.
- Indonesian HRC of the same grade was quoted at 543 USD/ton, down from 576 USD/ton in early June 2026.
- The EU’s new trade defense mechanism from July 2026 reduced India’s HRC quota to the EU by approximately 34%.
- Only two domestic producers, Hoa Phat and Formosa Ha Tinh, manufacture HRC in Vietnam.
- Domestic construction steel prices remain stable at 14,750-15,120 VND/kg.
What Happened
According to industry sources, Hoa Phat and Formosa Ha Tinh have sequentially lowered their domestic HRC prices in July 2026 to counter the influx of cheaper imports. Hoa Phat’s reduction of 900 VND/kg for August delivery was followed by Formosa Ha Tinh’s deeper cut of 1,050 VND/kg for August and September. The moves aim to narrow the gap between domestic and imported HRC, which has widened as global supply shifts.
The price pressure stems from a surge in Indian HRC exports to Vietnam after the European Union implemented new trade defense measures in July 2026, cutting India’s HRC quota to the EU by about 34%. This has redirected Indian supply to alternative markets, with Vietnam becoming a major destination in the first half of 2026. Imported HRC from India was offered at around 535 USD/ton CIF Vietnam in early July, significantly below domestic prices before the cuts.
Market Context
HPG shares closed at 22,400 VND on July 13, 2026, on the HOSE. The steel sector has been under pressure from global oversupply and weak demand, with HRC prices declining over the past month. The price cuts by domestic producers reflect the intensifying competition from imports, which could compress margins for HPG’s steel segment. However, construction steel prices have remained stable, providing some buffer.
Strategic Significance
The price reduction highlights the vulnerability of Vietnam’s domestic HRC industry to global trade flows, particularly from India. HPG’s ability to maintain market share against imports will depend on cost competitiveness and product quality. The company’s integrated production model and economies of scale may help mitigate margin pressure, but the influx of Indian supply, driven by EU trade policy, could persist. This dynamic underscores the importance of trade defense measures and the need for Vietnamese producers to diversify export markets.
What to Watch
- HPG’s Q2 2026 earnings report for margin impact and volume guidance.
- Further price adjustments by Hoa Phat and Formosa Ha Tinh in August 2026.
- Import volumes of HRC from India and other origins in the coming months.
- Any potential anti-dumping or safeguard filings by Vietnamese producers.
- EU trade policy developments affecting Indian steel exports.