Market participants shared with SteelMint that Vietnam based domestic integrated steel manufacturer – Formosa Ha Tinh (FHS) is planning to undergo a week-long maintenance shutdown in June 20.
— This will result in a reduction in HRC production, which will be around 2,00,000 MT in June 20.
— However, the usual production level is at 3,50,000 – 3,60,000 MT per month.
— Although there is no official notification from FHS regarding the production cut.
— Meanwhile, the company will discuss its July shipments offers internally in May’20. However no official confirmation on the same.
— Vietnam based re roller shared that, “Company might not receive an order form Malaysia, which is anticipated around 50,000 MT, and other domestic re-rollers have also slashed their allocations by up to 50% with the mill, thereby hurting production volumes.”
— The company has an installed crude steel capacity of 7MnT p.a.
— In Apr’20, the company had deferred their monthly HRC pricing announcement for May deliveries and negotiated the prices separately with the individual customers.
— Thus, Vietnamese importers have been aggressively importing HRC from nations like- India, Japan, South Korea owing to cheaper HRC offers.
Current imported HRC offers to Vietnam
–HRC (SAE 1006, 2mm), China- Benxi Steel is offering at USD 410/MT CFR basis. The prior offer was USD 405/MT CFR basis.
— HRC (SAE 1006, 2mm), South Korea- Hyundai Steel’s offers stood at USD 415/MT CFR basis. Before this, the offers stood at USD 410/MT CFR basis.
— HRC (SAE 1006, 2mm), Japan- Nippon Steel is offering USD 415-420/MT CFR basis.
— HRC (SAE 1006,2mm), Russia- MMK Steel is offered at USD 385-390/MT CFR basis.
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