Vietnam: Formosa Ha Tinh to Skip Monthly Pricing Announcement for May deliveries

The company has put off their monthly HRC pricing announcement for May deliveries shared by company officials to SteelMint. Further he shared that they will negotiate the prices separately with the individual customers.

--Formosa has an installed crude steel production capacity of 7 MnT pa.

--Significant drop in imported HRC offers from Russia and Indian and extension of lock-down in Vietnam fueled pessimism in domestic market. Also buyers in Vietnam prefer low priced imports over domestic.

--Prior this, last week Vietnam based domestic steelmaker, Formosa Ha Tinh has postponed its HRC pricing announcement until next week due to extended lock-down announced in the country till 22nd April'20 to fight against COVID-19.

--However, in March, company had reduced HRC (SAE 1006 skin pass) offers by around USD 40/MT and offering at USD 480/MT CFR basis following downtrend in imported HRC offers from major exporting nations.

Current HRC trade offers to Vietnam
-- Last week, two private Indian steel mills have booked around 1,60,000 MT of HRC to Vietnam at around USD 399-405/MT CFR Vietnam for June deliveries.

-- Russian steel manufacturer Magnitogorsk Steel Works (MMK) booked around 20,000 MT HRC towards the end of the previous week at USD 388/MT CFR Vietnam for July delivery.

-- Japanese steelmaker Nippon Steel booked around 20,000 MT of HRC towards the end of last week at USD 420/MT CFR Vietnam for June delivery. Recent offers stand at USD 415-CFR Vietnam.

-- HRC (SAE 1006, 2mm), South Korea-Hyundai Steel's offer continues to hover at USD 415/MT CFR basis.

-- HRC (SAE 1006, 2mm), China- Baosteel continues offering at USD 410/MT CFR basis.