Vietnam’s largest steel mill plans 20 days maintenance shutdown, market expects HRC prices to increase in domestic market.
Vietnam’s sole producer of HR Coil, Formosa Ha Tinh is planning to undergo a maintenance shutdown starting 30th Dec 2019, SteelMint checks with its channel. The hot strip mill (HSM) shutdown will span across 20 days from end of Dec’19
As per the information received by sources close to this matter,that company plans to shut its operations in its hot-strip mill from 30th Dec’19 till 17 Jan’20. This shall hamper the production of the company to the extent of 35% and can result to short supply and escalate prices in the near term.
Formosa has an installed crude steel production capacity of 7 MnT pa.
| Item | Product | Sales Volume (1000 -t/a) | Thickness/Diameter (mm) | Width (mm) |
| 1 | Billet | 478 | 130*130 mm/150*150 mm | |
| 2 | Hot Rolled Coil | 2,772 | 1.2-12.7 | <=1,880 |
| 3 | Hot Rolled Band | 2,446 | 1.2-25.4 | <=1,880 |
| 4 | Wire rod | 600 | 5-26 | |
| 5 | Bar in coil/Wire rod | 600 | Bar in coil – 20-55, Wire rod- 5-26 |
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| Total | 6,896 | |||
Chinese & Indian steel mills to raise HRC export offers for Feb shipments- Chinese and Indian steel mills are planning to raise HRC export offers to Vietnam for Feb-March deliveries. Lowered domestic supply may further increase dependence on imported HRC, escalating chances of further price hike in Jan’20.
Current imported HRC offers to Vietnam – Imported HRC trades to Vietnam remained slow this week as buyers have adopted a wait and watch mode since domestic steel makers Formosa will revise its HRC prices shortly for Feb deliveries.
1. HRC (Sae 1006) 2mm, China- Rizhao steel is offering at USD 480/MT CFR basis, unchanged against preceding week.
2. HRC (SAE 1006) 2mm, Japan- Nippon steel offering at USD 485-490/MT CFR basis.
3.HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offers stand at USD 480/MT CFR basis.
4.HRC (SAE 1006) 2mm, India- Indian mills are offering at USD 480-485/MT CFR basis.
5.Confirmed trade deal heard this week of around 10,000 MT of Indian HRC positioned cargo at USD 475/MT CFR Vietnam
Formosa’ s HRC Offers for Jan deliveries- Company’s HRC (SAE 1006, skin pass) offers are assessed around USD 470/MT CIF Ho Chi Minh city .Meanwhile offers for HRC of (non-skin pass) stood at USD 465/MT, CIF basis and SS400 & Pipe-making grade HRC at around USD 460/MT CIF basis for Jan shipments.
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