Vietnam based domestic mill – Formosa Ha Tinh Corporation has slashed its HRC offers for June shipments by USD 40/MT on monthly basis. Market participants shared that currently Formosa is offering HRC at USD 600/MT CFR Ho Chi Minh City. However as per previous price assessment in the month of March offers were at USD 640/MT CFR basis.
However after observing low demand from end users and decline in Chinese HRC offers Formosa has reduced HRC offers from today.
Formosa Ho Tinh hold the annual capacity of 3.5 MnT and all set to open second blast furnace, doubling its crude steel making capacity to 7 MnT.
The second blast furnace is expected to become operational in May-June 2018 and this will allow company’s plant to produce 5.2 MnT of flat steel, primarily hot-rolled coil and hot-rolled band.
Thus increase in house capacity along with economical offers will reduce the dependency of imported HRC among Vietnamese buyers.
Imported HRC offers from Chinese Mills to Vietnam Decline- Imported HRC offers to Vietnam moved down by USD 15-20/MT on monthly basis over volatility in Chinese market port US tariff imposition.
Currently HRC offers to Vietnam from China are heard at USD 615-620/MT CFR Vietnam.Last month the offers was assessed in the range of USD 630-640/MT CFR Vietnam.
Chinese based Benxi Iron and Steel mill is offering around USD 620/MT CFR Vietnam and Rizhao Iron and Steel is offering at USD 615/MT on CFR basis.
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