Vietnam: Formosa cuts HRC list price for Dec '20
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- Formosa slashed HRC list price by $15 for Dec
- Domestic supplies in Vietnam increase as Hoa Phat ramps up output
- Trades of over 60,000 t imported HRC reported so far this week
Vietnam's domestic mill - Formosa Ha Tinh (FHS) has lowered its HRC list prices for Dec'20 deliveries. The company has slashed offers by $15/t, SteelMint learned from its trade channels. Market sources mentioned that the price cut is quite in line with the price trend observed in the last one month and they do not expect any significant impact of it.
Current FHS offers:
- HRC (SAE 1006, skin pass) is offered at a $535-540/t CIF basis. Last month's offer was at a $550-555/t CIF basis.
- HRC (non-skin pass) offers to stand at a $530-535/t CIF basis against the last offer at a $545-550/t CIF basis.
- Company has marginally raised wire rode offers by round $4/t. Offers merchandise quality (MQ) 1 at $535/t CIF and MQ2 are at $525/t CIF for Dec shipments.
Factors behind the reduction in offers:
1.Decline in imported HRC offers: Imported HRC offers from China are currently hovering at $525/t CFR basis down by $15/t against $540/t CFR basis at beginning of Sep '20.
Deals reported- Vietnam's imported HRC market has regained momentum with deals of 60,000-70,000 t being concluded this week. SteelMint learned from its credible sources that HRC (SAE 1006) deals from China, Russia, and Kazakhstan were concluded in the range of $510-525/t CFR basis for Nov '20 shipments.
2.Hoa Phat's Sept steel output exceeds Formosa's production- Hao Phat recorded its best-ever crude steel production volumes in Sep '20 at 590,000 t, surpassing Formosa Ha Tinh as Vietnam's largest steel producer in Sept '20. The company has recorded 4 mn t of crude steel output in the first 9 months of CY '20, a 100% increase in CPLY.
