Vietnam’s domestic integrated steel mill, Formosa Ha Tinh (FHS), has released its new price list for Aug’20 deliveries today. The company has sharply raised its HRC offers along with wire rod offers due to the increase in global HRC offers.
Current offers of FHS-
* HRC (SAE 1006, skin pass) stands at $455/t CIF basis and non-skin pass at $450/t CIF basis.
* Low carbon wire rod offer stands at $486/t CIF basis.
Factors behind the increase in offers-
1. Hike in imported HRC offers – Steel mills from China, Japan, Korea & India have sharply raised offers. For instance, imported HRC offers from China have increased by around $25-30/t in last one month.
2. Active buying in Vietnam: Importers based in Vietnam are actively seeking material both in the domestic and import market which propelled steel mills to raise offers.
“Current HRC offers from Formosa for big customers are at $450/t (10,000-20,000 t), while for small customers at $455/t (5,000 t),” shared a market participant with SteelMint.
“Last month, FHS was providing discounts to its customers and some trades were reported at around $425/t CIF basis. Although its official offer was reported around $440/t CIF basis for skin pass” shared another Vietnam based sources.
Current imported HRC offers for Vietnam-
— China- Benxi Steel offer stands at $465-470/t CFR basis. Last week, the offer was around $455/t CFR basis.
— China- Chunghung Steel offer stands at $450/t CFR basis. Last week the offers were in the range of $445/MT CFR basis.
— India- offer stands at $445/t CFR Vietnam. The previous week offer was at $435-440/t CFR basis.
— Japan- Nippon steel and JFE are offering at $460/t CFR basis. Last week the offers were in the range of $450/t CFR basis.
— South Korea- Hyundai Steel’s offer stands at $460/t CFR basis. Last week the offer was around $450/t CFR basis.
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