Vietnam based domestic steel producer Formosa Ha Tinh Corporation’s which has installed crude steel making capacity of 7 MnT is undergoing maintenance shut down in its hot strip mill in the beginning of the Feb’19. However the company official couldn’t confirm the same but market sources shared that steel mill will remain shut down from 1st Feb’19 to 10 Feb’19.
Thus currently Formosa has reduced the supply of HRC in domestic market for local buyers amid maintenance plans and uptrend in Chinese steel prices before holidays has in turn inch up imported HRC offers to Vietnam this week.
However demand for imported HRC in Vietnam remain on positive side as end users are restocking the material ahead of Tet Holidays or Lunar New Year holidays starting from 4th Feb to 10th Feb’19. Thus market will remain closed for one week.
Imported HRC offers to Vietnam – Last week Chinese steel mills are offering imported HRC offers to Vietnam at around USD 500-515/MT CFR Vietnam. However this week they stopped offering as issuing letter of credit was major concern.
Meanwhile Indian based steel manufacturer has also increase imported HRC offer for Vietnam by USD 10/MT and is offering at USD 510/MT CFR Vietnam. Last offer was at USD 490-500/MT CFR basis.
Formosa Ha Tinh increases HRC prices for March shipments- The company had increased the offers of HRC SAE 1006 skin pass by USD 15/MT and is currently assessed around at USD 495/MT CIF Ho Chi Minh City against last month offers which was around USD 480/MT CFR.
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