Vietnam’s domestic steel mill- Hao Phat is likely to commence its HRC sales in the month of Sep’20 in the local market. HRC production is part of the second phase of its Dung Quat project, which includes two blast furnaces of 1 mn t each and a flat rolling complex to produce HRC. In the first phase, the company was mainly focused on long products.
Timeline
*The company commenced its trial production for its new HRC line in April.
*After this the company had produced its first coil from slab cast at its Dung Quat Iron and Steel complex in the central province of Quang Ngai in early May’20.
*In Sep they will start selling HRC for their usage first to make pipes and make it commercial gradually for both in the domestic and export markets.
“The company is aiming to reduce the flow of imported material to Vietnam by producing HRC domestically. However overall demand in Vietnam market is improving which will continue the dependency on imports,” shared by HRC importer based in Vietnam.
Current imported HRC (SAE 1006, 2mm) offers for Vietnam-
— China is on the public holiday on the occasion of Dragon Boat Festival.
— Japan- Nippon steel and JFE are offering at $465/t CFR basis. At the beginning of the week, the offer was around $460/t CFR.
— South Korea- Hyundai Steel offer stands at $470/t CFR basis. At the beginning of the week, the offer was around $ 465/t CFR.
–Indian HRC offers are around $ 445-450/t CFR basis.
–Vietnam- domestic steel mill Formosa Ha Tinh raised its prices last week by around $ 25/t and offered HRC (SAE 1006, skin pass) at $455/t CIF basis and non-skin pass at $450/t CIF basis for Aug delivery.
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