Vietnam Formosa Plastics Hejing Company has been granted an extension of its India export license, which may further increase its export volume to India

The Formosa Plastics steel company in Vietnam HCT590X steel has obtained the third BIS certificate renewal required to supply steel to India, allowing the company to export hot-rolled steel products that meet the Indian Standard Steel Grade (IS) 5986 to India, valid until December 2024. After the Formosa Plastics steel company license expired on December 4, 2023, it was renewed in May of this year with the approval of the Indian government, allowing the export of hot-rolled steel products that comply with Indian Standard (IS) 1079 and hot-rolled carbon steel bars for cold pressed extension of steel grade (IS) 11513.

As far as we know, the market is waiting for the latest round of HCT590X steel quotations from Formosa Plastics steel company after being approved for export. We have learned that some importers who order August delivery from Formosa Plastics steel company are requesting to change the steel grade (IS) 1079 to (IS) 5986. Currently, the hot coil prices offered by Formosa Plastics steel company to India are generally around 570-575 USD/ton CFR India. Due to the high cost of 5986 grade, some traders have reported that the latest price may be 10-15 USD/ton higher than that of steel grade 1079. The price increase for hot coils in local Mumbai factories in India is generally around 626-630 US dollars per ton. Currently, buyers have a lower willingness to purchase due to expectations of resuming production at maintenance steel mills and high domestic prices.

Overall, the competitiveness of domestic resource prices in India is weaker than that of imported resource quotations, and obtaining an extension of export licenses may further increase Vietnam's export volume of hot coils to India HCT590X steel.