Vietnam: Imported HRC Offers Remain Firm; Limited Trades Reported

In conversation with Vietnam based market participants, SteelMint learned that prominent HRC exporting nations keep their offers consistent against the previous week.

Vietnam trade sources shared that, "Market remain quiet today as buyers have adopted a 'wait & watch' approach before making fresh bookings."

Further, Vietnam's domestic integrated steel maker Formosa Ha Tinh announced a price hike of USD 15/MT last week, and the mill will also take up maintenance shutdown in its hot strip mill for 20 days, starting from 30th Dec'19 until 17th Jan'20. This is likely to increase the dependency on imports and in turn, increase the offers from major exporting nations in the near term.

In addition to this, sources said that Indian mills are eyeing to raise HRC export offers to Vietnam for Feb-March shipments as they are already booked for Jan deliveries.

Current HRC export offers to Vietnam- Week 51, 2019-

1. HRC (SAE 1006) 2mm, Japan- Nippon Steel offering at USD 490/MT CFR basis.

2. HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offers stand at USD 485/MT CFR basis.

3. HRC (SAE 1006) 2mm, China- Rizhao steel mill is offering at USD 485/MT CFR basis.

4. HRC (SAE 1006) 2mm, India - Indian steel mills offering at USD 480-485/MT CFR basis.

5. Vietnam's domestic integrated steel maker Formosa Ha Tinh revised offer for HRC (SAE 1006, skin pass) assessed at USD 485/MT CIF Ho Chi Minh, which was USD 470/MT CIF basis for Jan'20 deliveries.