Vietnamese Lotus Group & Formosa Ha Tinh Steel sign HRC purchase agreement
Vietnamese steel mills turned to purchase domestic hot-rolled coil to avoid the US' anti-dumping duty. Recently, Lotus Group signed a hot-rolled coil purchase contract with Formosa Ha Tinh Steel.
From January to September this year, hot-rolled price in Vietnam rose year-on-year, resulting in a drop of Lotus Group's profit. Turning to domestic hot-rolled coil purchase could temporarily ease import pressure, and lower domestic price, which could also reduce the group's exchange losses.
Formosa Ha Tinh Steel estimated that hot-rolled coil sales volume this year will be 3-6 million tons, which was enough to supply domestic demand.
As the China-US trade war intensified, it will indirectly bring positive effects to Formosa Ha Tinh Steel . According to statistics, Vietnamese steel industry this year will grow by 20-22%, and economic growth was targeted at 6.5-6.7%. Besides, the infrastructure project and steel demand will also increase.
