Indian Mill Concludes 40,000 MT HRC Export Deal to Vietnam

Vietnam based steel mills are heard to have collectively booked around 40,000 MT HRC with one of major Indian steel manufacturers. Although price could not be confirmed at the time of publication of this report, but trade sources indicated SteelMint that it may have concluded at around USD 405/MT CFR basis for end April- May shipments.

India's large steel manufacturers plan to scale down the production as a precautionary measure to combat the spread of COVID-19 will eventually result to decline in capacity utilization. This, in turn, forced Indian steel mills to explore HRC export market at lower price amid ongoing lockdown which has dried down domestic demand.

Market sources based in India shared that, "Domestic market came to a standstill, so major steel mills can easily shift their interest to exports for April end May shipments".

Vietnam Formosa may lower production- Company officials close to the matter shared that, domestic steelmaker Formosa Ha Tinh has kept its HRC offers unchanged and planning to reduce its production in the near term. However, the same is still under discussion and confirmation on same is still awaited.

Current imported HRC offers to Vietnam

-- HRC (SAE 1006, 2mm), China- Rizhao Steel is offering at USD 430/MT CFR basis. At the beginning of the week, offers were at USD 450-455/MT CFR basis.

-- HRC (SAE 1006, 2mm), South Korea- Hyundai Steel is offering at USD 455/MT CFR basis. At the beginning of the week, offers were at USD 460-465/MT CFR basis.

-- HRC (SAE 1006, 2mm), Japan- Nippon Steel is offering at USD 455/MT CFR basis. Previous offer- USD 465/MT CFR basis.

--HRC (SAE 1006, small coils),Ukraine- Metinvest Steel is offering at USD 425-430/MT CFR basis.