Vietnam: Imported HRC Market Observes Less Trades; Offers Stable

This week imported HRC offers to Vietnam remain largely stable with minimal fluctuations from India and Russia. Offers from China remained largely stable on a weekly basis.

However, amid bearish market sentiments, towards the end of last week, Vietnam based domestic steelmaker Formosa Ha Tinh announced a steep cut of USD 20/MT for all HRC products owing to low priced imports coming from India and Russia.

Thus trade participants expect further downside in imported HRC offers to Vietnam and also foresee Formosa to give discounts on quoted base price.

Current HRC offers to Vietnam- Week 43, 2019

1. HRC (SAE 1006) 2-3mm/ Chinese offers- Rizhao steel is offering at USD 430/MT CFR Vietnam unchanged from the previous week.

2. HRC (SAE 1006) 2mm/ Indian offer- major Indian mills are offering at USD 430/MT CFR Vietnam remain unchanged against previous week. However, position cargoes are being offered at USD 418/MT CFR basis.

3. HRC (SAE 1006) 2mm/ Russian offer- MMK steel is offering big coils at USD 408/MT CFR basis as against USD 410/MT CFR basis in the previous week. Small coil offers stand at USD 398/MT over USD 400/MT in the previous week.

4. HRC (SAE 1006) 2-3mm/ South Korean offer- Hyundai Steel offering at USD 430/MT CFR Vietnam, unchanged over last week.

5. HRC (SAE 1006) 2mm/ Japanese offer- Nippon Steel is offering at USD 430 /MT CFR Vietnam, stable over the previous week.

6. HRC (SAE 1006) 2mm/ Brazillian offer- Arcelor Mittal is offering at USD 425 /MT CFR basis.

7. Formosa HRC (SAE 1006, skin pass) is priced at USD 460/MT CIF basis over USD 480/MT CIF basis a month ago. However, offers for non-skin pass stood at USD 455/MT CIF basis as against USD 475/MT CIF basis in the previous month.