Russian MMK Steel Books HRC Export to Vietnam

In conversation with trade participants based in Vietnam SteelMint learned that, the leading Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has concluded a deal of HRC exports to Vietnam for Nov'19 deliveries.

As per an update received Russian MMK steel booked around 30,000-40,000/MT of HRC (small coil) for exports with Vietnam. The deal price was confirmed at USD 442/MT CFR Ho Chi Minh for Nov delivery.

Also towards the end of previous week SteelMint had reported that Indian steelmakers have collectively booked 1,00,000 MT of HRC with Vietnam for exports at USD 455-460/MT CFR Ho Chi Minh for Oct delivery. Indian steel mills are aggressively exporting HRC to Vietnam over weakening domestic steel prices.

Low priced imports to Vietnam weigh on Formosa's steel prices- Last week Vietnam based domestic steelmaker Formosa Ha Tinh reduced its HRC (SAE 1006, skin pass ) by USD 51/MT and offering at USD 480/MT CIF basis for November deliveries in line with cheaper alternatives available from major exporting nations.

Furthermore, competitive imported HRC offers from India and Russia pulls down HRC offers from China.

Current imported HRC offer to Vietnam

1. HRC (SAE 1006) 2-3mm/ Chinese offer is at USD 455-460/MT CFR Vietnam.

2. HRC (SAE 1006) 2mm/ Indian offer- Indian steel offering at USD 455-457/MT CFR basis.

3. HRC (SAE 1006) 2mm, big coils/ Russian offer- MMK Steel is offering at USD 452/MT CFR basis.