Vietnam: Formosa Revises Steel Price for November Shipments

Vietnam's domestic steel producer - Formosa Ha Tinh Corporation has today announced fresh steel offers for Nov’18 shipments. Company revises its HRC & wire rod offers on monthly basis which is considered as the benchmark for Vietnamese buyers.

According to company officials, Formosa has slightly lowered its HRC SAE 1006 offers by USD 2/MT M-o-M and is presently assessed at USD 600/MT CIF Ho Chi Minh City. Last month company had declined HRC offers by USD 8/MT on monthly basis to USD 602/MT CFR basis for October shipments.

Thus Formosa’s HRC offers remain firm following lower imported HRC offers from Chinese and Indian mills combined with bearish market sentiments prevailing among end users in Vietnam. Average of imported Chinese HRC price assessment was around USD 593/MT, CFR during 01-15 Sept’18.

Formosa steel sales figures for last month - As per sources,in last month, company recorded domestic sales at around 2,68,000 MT of HRC and 36,000 MT HRC for exports in overseas markets. As compared to previous month figures, HRC export sales figure has moved down as it was recorded around 50,000 MT.

However for wire rod the sales numbers were around 29,000 MT for domestic market and around 26,000 MT for exports to overseas market.

Formosa increases wire rod offers by USD 10/MT- Meanwhile on other hand company have raised wire rod offers by USD 10/MT M-o-M basis and is assessed at USD 595/MT CFR basis. However last month wire rod offers was hovering at USD 585/MT CFR basis.

Current HRC trade offers to Vietnam - Week 38, 2018

1.HRC (SAE 1006) 2-3mm / Chinese offer - Benxi Steel is at USD 595/MT CFR Vietnam.

2.HRC (SAE 1006) 2-3mm / Chinese offer - Rizhao Steel Offer at USD 585/MT CFR basis.Last offers stood at USD 590/MT CFR basis.

3.HRC (SAE 1006) 2-3mm / Chinese offer - Magang Steel Offer at USD 580/MT CFR basis.

4.HRC (SAE 1006) 2-3mm / Russian offer - MMK Steel offer at USD 578/MT CFR basis.

6.HRC (SAE 1006)) 2-3mm/ Korean offer- Hyundai Steel offer at USD 600/MT CFR basis.Last offers was at USD 620/MT CFR basis.

7.HRC (SAE 1006)) 2-3mm/ Indian offer- Essar Steel offer at USD 580/MT CFR basis.

8.Last week a major mill based in western India has booked a vessel of around 15,000 MT of HRC (SAE 1006) to Vietnam in the range of USD 580-585/MT CFR basis for October shipments.