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Vietnam's Formosa Revises HRC Offers

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BigMint Bureau

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12 Mar 2018, 16:49 IST

In line with SteelMint's earlier report, Vietnam based domestic mill - Formosa has revised fresh HRC offers .The steel mill had last offered material in end of Jan'18. After monitoring buying sentiments from end users and imported offers of HRC from Chinese steel mills,company has announced fresh HRC offers today.

Market participants shared that currently Formosa is offering HRC at USD 640/MT CFR Ho Chi Minh City.However as per previous prices assessment HRC offers stood at USD 578/MT CFR basis towards the end of Jan'18.

In the month of February, Formosa has not quoted any fresh offers of HRC owing to Tet holidays prevailing in Vietnam from ( 16th Feb-21st Feb).

Formosa Ho Tinh hold the annual capacity of 3.5 MnT and all set to open second blast furnace, doubling its crude steel making capacity to 7 MnT.

The second blast furnace is expected to become operational in May-June 2018 and this will allow company's plant to produce 5.2 MnT of flat steel, primarily hot-rolled coil and hot-rolled band.

Imported HRC offers from Chinese Mills to Vietnam Decline-This week imported HRC offers to Vietnam moved down by USD 5-10/MT amid decline in Chinese HRC offers both in domestic and global market and weakening sentiments.

Currently HRC offers to Vietnam from China are heard at USD 630-640/MT CFR Vietnam.Last week the offers was assessed in the range of USD 635-645/MT CFR Vietnam.

However domestic flat steel producer Formosa is also offering in similar price levels.Thus imported HRC offers to Vietnam is at par with domestic prices.

Market sources also shared that Vietnam has booked HRC of around 5000 MT with Chinese based Benxi Iron and Steel mill which is around USD 635/MT CFR Vietnam. The deal price is lower by USD 10/MT against previous deal reported last week.

Thus demand from end users remain limited as they are anticipating further fall in Chinese steel prices.Meanwhile buyers may prefer purchasing material from domestic mill over prompt delivery rather than preferring imported cargoes.

However HRC export offers from Japanese and South Korean steel mills were heard at USD 665-680/MT, CFR Vietnam.