Overview Of Vienam Steel Market From 10.01 to 15.01.2022

Imported Scrap Market:

The global scrap market has rebounded, and the prices of imported scrap are expected to increase, especially when billet and domestic construction steel prices rise. This also supports the domestic scrap prices. 

Domestic Scrap Market:

The mills continue to increase prices, especially in the South. The price increase this week ranges from 200 to 500 VND/kg depending on the mill. Scrap yards also see a slight increase in prices, focusing on purchasing and reducing sales. Scrap remains in demand, and there is a possibility of further price increase with rising billet and construction steel prices. 

Export Billet Market:

Global billet prices have increased by 5-10 USD/ton. Vietnamese mills are preparing to re-enter the export market if the upward trend continues. 

Domestic Billet Market:

Billet prices have increased more than in previous weeks, mainly because this week the construction steel reported a simultaneous price hike in both the North and the South. The billet prices have also risen due to the increase in scrap prices, high demand, and positive signals from China. In the coming week, there is a possibility of a slight increase in billet prices. 

Imported HRC Market:

In contrast to the explosive growth in the first week, in the second week, the market has softened despite the slight price increase. This is because of the waiting for the new prices from Formosa and Hoa Phat, and the deep price reduction from these two mills, ranging from 70-75 USD/ton CFR. The difficulties in the imported HRC market are expected to continue.

 Domestic HRC Market:

Businesses have kept HRC prices unchanged throughout the week to wait for new prices from Formosa and Hoa Phat. When both mills reduced prices significantly, bringing the CIF price for March 2022 to 735-750 USD/ton, it means that it will be very difficult for HRC prices to increase with common steel grades in the first quarter of 2022. The market is also expected to be less active than anticipated.

 Construction Steel Market:

Hoa Phat and many other mills in the North have raised the prices of coil steel by 200 VND/kg on January 15, and it is expected that most mills in the South will increase the prices of rebar and coil steel by 300 VND/kg from the beginning of the next week. If this happens, rebar prices in the North may increase again. The construction steel market is recovering, and mills want to stimulate consumption.

 Steel Pipe and Box Market:

Prices continue to decrease, but the rate of decline is slower, and it mainly affects certain brands with lower price cuts. Consumption this week also decreased compared to the previous week due to the approaching Tet holiday. The market is expected to have narrower fluctuations in the coming week.

 Overall, the scrap, billet, and construction steel markets are maintaining their steady momentum and continue to rise. Meanwhile, the HRC, sheet, and pipe markets are still experiencing decreases. The deep price reductions by Formosa and Hoa Phat indicate that the domestic HRC, sheet, and pipe markets will need to adapt more significantly to ensure activity in the first quarter of 2022."

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