This week, there have been many contradictory trends, but overall, steel prices continue to rise, and trading has improved compared to the same period in August. The market is gradually recovering in terms of prices and transactions, but not uniformly. Challenges are likely to arise due to unfavorable impacts from the global market, making the market volatile in the coming phase.

Imported Scrap Market:

Due to cheap scrap prices from the US, the EU flooded the market, leading to a decrease in imported scrap prices. However, Japanese H2 scrap only experienced a slight decrease, not significantly affected by the strong appreciation of the USD. The imported scrap market is currently experiencing intense competition and is likely to decrease slightly further.

Domestic Scrap Market:

While billet prices have decreased slightly, domestic scrap prices have fundamentally increased, despite some contradictory developments. However, in the coming week, favorable factors are likely to weaken, so domestic scrap prices may fluctuate.

Exported Billet Market:

Continued demand from Europe has driven the overall offer prices in Southeast Asia to rise, even as the Chinese market declines. Vietnamese offer prices have even surged, but it may be difficult to compete.

Domestic Billet Market:

The significant increases in construction steel and scrap have not been strong enough to boost the domestic billet market, especially when billet demand is weaker due to increased mill inventories. Therefore, domestic billet prices have slightly decreased, but noteworthy news is Formosa's decision to offer billet in the domestic market from the end of this week.

Imported HRC Market:

The attraction from Europe has caused the market to no longer receive new offers from Japan, Taiwan, and even fewer offers from India, with prices rising by 20-30 USD/ton. On the contrary, the Chinese market is experiencing fluctuations and declines, so the Chinese offer prices are still slightly decreasing, even though Formosa has officially stopped reducing HRC prices in September.

Domestic HRC Market:

Formosa's decision to stop reducing prices opens up many hopes for the market to recover in terms of prices and transactions in the final stage of the year, even though everything is still challenging this week.

Construction Steel Market:

Hoa Phat increased the price of rebar by 150 VND/kg in the North, and many other mills followed suit. The trading volume in the first two weeks of September increased more than in the same period in August. Next week, Hoa Phat will increase the price of rebar in the South, and the market will be observing other mills amid the slowdown in consumption.

Pipe and Box Steel Market:

Hoa Sen continues to raise prices this week, re-establishing a one-week/one-time price increase pattern. Many other mills also increased prices slightly, and the market continues to move towards improved trading.

Corrugated Iron Market:

Similar to pipes and boxes, many mills continue to raise corrugated iron prices this week and the following week. Thus, the market is still showing signs of improvement, although it has not met expectations.

Source: Giathepton.com