Overview Of Vietnam Steel Market From 11.07 to 15.07.2022

Imported scrap market:

This month's Kanto auction ended with a decrease of over 60 USD/ton compared to the previous month, but thanks to slight upward movement in US scrap prices, Japan's H2 only experienced a minor decline. Import scrap trading this week has been quite active, with many successful deals for regular scrap orders. Although there is still hope for a slight increase, the prospects of growth in imported scrap are fragile due to the prevailing global trends..

Scrap Market:

Overall, this week saw an increase in prices from factories to scrapyards. However, towards the end of the week, there were signs of a decline as Shengli and An Khanh adjusted their prices, and Dai Viet halted scrap purchases for maintenance. Concerns over a new price drop are justified as crude steel production in Duong Son decreased significantly, and scrap and steel prices in China also experienced a steep decline this week. Despite some hopes for a slight increase, the prospects of growth in imported scrap remain uncertain due to global trends.

 Exported Billet Market:

There were not many offers made as the Chinese billet market experienced a significant drop, leading to a decrease in prices in Southeast Asia as well. Vietnamese sellers reduced their offers by 20-30 USD/ton but faced strong competition from other countries, resulting in no new deals this week. Prices may continue to decrease in the upcoming week.

 Domestic Billet Market:

There were very few new transactions at the moment, with most activities involving trading between traders. Due to the decrease in construction steel and exported billet, domestic billet prices continued to drop this week, especially towards the end of the week. The market dynamics in the next week are expected to be similar to this week.

 Imported HRC Market:

With the decline in the futures market, this week's HRC offers were scarce and weak. Prices for SS400 and Q195 decreased by 30-40 USD/ton compared to the previous week, while SAE 1006 dropped by 10-20 USD/ton. Formosa's reduction of 100 USD/ton added further pressure on import prices. In the 29th week, Hoa Phat may announce new prices, which could further increase pressure in the import market.

 Domestic HRC Market:

After Formosa's significant price reduction, the domestic HRC market also experienced a 1-2% drop, more pronounced with large enterprises and multiple times for small enterprises. However, the price drop did not match the increased consumption as most buyers remained cautious due to fluctuations in the Chinese market.

 Construction Steel Market:

A new price reduction was implemented, marking the third decrease in July for Hoa Phat and most manufacturers. Steel consumption in May fell below one million tons per month for the first time. This trend continued in June and persisted in July despite consecutive adjustments in construction steel prices.

 Pipe and Box Steel Market:

A new price reduction has formed, but it is not widespread, with participation from Hoa Phat and Viet Duc in the North and Sendo in the South. Overall, the market is relatively stable, preparing for more widespread adjustments in the upcoming week.

Corrugated iron Market:

Similar to the pipe and box steel market, the sheet market is facing pressure from various sides. Some small mills have reduced prices, but the market is waiting for larger manufacturers, especially as exports have slowed down for many mills.

 Two significant events this week followed the same scenario of a deep decline. In Japan, the regular July Kanto scrap auction decreased by over 60 USD/ton compared to the previous month, while in Vietnam, Formosa lowered the official HRC price by 100 USD/ton for July compared to June. Additionally, the comprehensive downturn in the Chinese market and the absence of Turkey due to holidays made it a challenging week for the steel market in Vietnam. The market continues to seek stability while expecting a recovery.

 Source: GiaThepton.com

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