Imported HRC Prices in Vietnam Fall as Domestic Supply Increases

Imported HRC offers in Vietnam from China moved down by USD 10/MT on weekly basis owing to availability of low priced HRC from domestic mills.

Traders based in Vietnam commented that domestic HRC offers are quite reasonable compared to imported prices and buyers are ready to procure domestic cargoes which provides them facility of restocking without waiting for months for shipments. Excess and cheaper availability of HRC has resulted to decline in Vietnam imported HRC offers from China.

Vietnam Formosa Ha Tinh to double the steel capacity by Mar'18 - Vietnam Formosa Ha Tinh has set the target to double the steel capacity by Mar'18. The plans involve the installation of two new blast furnaces, which will results to crude steelmaking capacity from the current 3.5 MnT to 7MnT.

This will allow the plant to produce 5.2 MnT p.a of flat steel, which includes hot rolled coil and hot rolled band. The plant also has the capacity to produce 4,78,000 tonnes of billet, 6,00,000 tonnes of wire rod and 600,000 tonnes of bars in coil. This has lead to put pressure on imported cargoes of Vietnam.

Chinese HRC export offers to Vietnam - Currently imported HRC 2-3mm ( grade SAE 1006 ) from major Chinese mills like Rizhao, Xinyu and Magang are in the range of USD 565/MT CFR Vietnam.Last week the offers was in the range of USD 570-575/MT,CFR basis. Although Benxi mills are likely to receive bids from buyers before making any firm offers.

Vietnamese Importers Seeking Lower Offers for Indian HRC Cargoes -As per market sources Indian positioned cargo was reported to be sold at USD 555/MT CFR Vietnam.Since Vietnamese buyers were seeking Indian cargo at USD 555/MT CFR, but it was not clear that they managed to book any cargo at these levels or not as the prices was on lower side. Although Indian HRC export offers are still prevailing at USD 575-580/MT CFR Vietnam.

Global Flat Steel Export Offers-Week 45

Source-SteelMint Research
*including VAT