Vietnam Mills Cut Bids for Imported HRC Further

Vietnam mills have further cut down their bids for imported HRC according to domestic sources.

Current bids for SAE1006 grade HRC from Vietnamese mill are assessed at around USD 545/MT CFR Vietnam against offers of USD 555-565/MT CFR for Chinese cargo.

“Domestic demand is slightly weak in Vietnam and mills have sufficient inventory at the moment. Also Formosa has commenced HRC production in Vietnam, which has reduced the dependence on imported cargo.” said a local trader based in Ho Chi Minh City.

Offers for Indian positioned cargo are at around USD 555-560/MT CFR and Korean at around USD 585/MT CFR. Japanese offers are at USD 610/t CFR Vietnam, he further added.

Vietnam is one the largest importer of steel in the world and it imported above 20 MnT of steel per annum, according to Vietnam Steel Association (VSA). Out of which HRC contributes around 55-60%.

Vietnam a major export destination for Indian steel suppliers

Vietnam has emerged as a major export destination for Indian suppliers after China has significantly reduced its export volumes this year. According to customs data maintained with SteelMint, India has exported 5.91 MnT flat steel during Jan-Jul’17. Vietnam has remained the largest importer at 0.95 MnT followed by Italy (0.86 MnT), Belgium (0.71 MnT) and UAE at 0.57 MnT.

In 2016, India exported 5.04 MnT flat steel. Major importing nations were Belgium (0.79 MnT), Italy (0.50 MnT), UAE (0.47 MnT) and Vietnam (0.35 MnT).