Company reduced its HRC offers by USD 20/MT and wire rod offers by USD 16/MT for December deliveries over competitive offers from India and Russia.
Vietnam’s domestic integrated steel producer – Formosa Ha Tinh has reduced its prices in all its Hot rolled products by USD 20/MT today for Dec deliveries.
According to company officials, revised offers for HRC (SAE 1006 skin pass) is assessed around USD 460/MT CIF Ho Chi Minh city against last month’s offer which was at USD 480/MT CIF basis.
Meanwhile, offers for HRC of (non-skin pass) stood at USD 455/MT, CIF basis. Last month the company was offering the same grade at USD 475/MT CIF basis.
Along with this, company is offering SS400 & Pipe-making grade HRC at around USD 450/Mt CIF basis for Dec shipments which was USD 470/MT CIF basis last month.
Few trade participants are of the view that Formosa may announce some additional discounts over quoted offers to match with the existing offers of Indian & Russian mills, however no official confirmation was received regarding the same.
Company reduces wire rod offer by USD 16/MT for Dec– Company also lowers its wire rod offers by USD 16/MT and offering grade 2 mesh quality wire rod at USD 482/MT CFR basis delivered in December which was previously offered at USD 498/MT CFR basis.
Formosa declined its HRC offers due to low priced imports from India and Russia.Currently Indian HRC position cargoes are offered around USD 418/MT CFR basis.However major mills are offering around USD 430/MT CFR basis.This in turn influenced Chinese steelmakers to lower their HRC export offers for Vietnam since end users are eyeing for cheaper alternative from major exporting nations.
Current HRC offers to Vietnam – Week 42,2019
1.HRC (SAE 1006) 2-3mm/ Chinese offers- Chinese steel mills are offering at USD 430-435/MT CFR Vietnam
2. HRC (SAE 1006) 2-3mm/ South Korean offer- Hyundai Steel offering at USD 430/MT CFR Vietnam.In the beginning of this week offers were around USD 450/MT CFR basis.
3.HRC (SAE 1006) 2mm/ Japanese offer- Nippon Steel is offering at USD 430 /MT CFR Vietnam.Last week offers was in range of USD 440-450/MT CFR basis.
4.HRC (SAE 1006, big coils) 2mm/ Russian offer- MMK Steel is offering at USD 410-420 /MT CFR basis and small coils at around USD 400/MT CFR basis.
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