Vietnam’s domestic steel mill – Formosa Ha Tinh Corporation have announced their HRC offers for July shipments. The company has quoted their HRC offers up by USD 15/MT M-o-M. Company revises their HRC offers on monthly basis which is considered as a benchmark for Vietnamese buyers.
Market participants shared that currently Formosa is offering HRC at USD 615/MT CFR Ho Chi Minh City. However as per previous price assessment in the month of April the same stood at USD 600/MT CFR basis.
Last week, Vietnam based buyers remained hesitant to book imported HRC from Chinese mills as they did not lower their offers. Chinese HRC export offers remained at USD 585-605/MT, FoB China which would come around USD 605-625/MT, CFR Vietnam depending on the mills.
Formosa ramps up steel making capacity to 7.1 MnT pa- Last week on 18th May Vietnam’s domestic producer Formosa Ha Tinh Corporation (FHS) which holds the annual capacity of 3.5 MnT has started its second blast furnace which doubled its crude steel making capacity to 7 MnT.
The 2nd blast Furnace is 4,350 cubic meter which will increase the operating rates.After commencing second blast furnace ,the mill will then have a total capacity of 7.1 MnT pa, including 5.2 MnT pa of flat steel – primarily HRC and hot-rolled band as well as billet, 0.6 MnT pa of wire rod and 0.6 MnT pa of bars and coil.
Thus,this will reduce the dependency of Vietnamese buyers on imported material from China.Since they prefer domestic offers owing to greater convenience and prompt delivery as compared to material coming from exporting nations.
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