Overview of Vietnam Steel Market From 14.11 To 18.11.2022

Imported scrap market:

Prices continue to decline by 10-20 USD/ton for various types of scrap, but Vietnamese buyers remain outside the market. The decreasing scrap imports will create additional difficulties for the domestic recovery, which has shown signs of improvement as the widespread supply shortage becomes evident.

Domestic scrap market:

After weeks of deep declines, the scrap shortage has emerged in many places this week, resulting in stabilized prices. Some mills such as Nghi Son and Viet Nhat have increased their prices. The trend of collecting scrap from the South to the North is also active, leading to clear price discrepancies. Many scrapyards and suppliers have returned to the market, causing prices in several scrapyards to increase slightly, bringing hope. However, the market still lacks many foundations for a comprehensive and sustainable recovery.

Export HRC market:

There have been more inquiries, and prices have increased by 10-15 USD/ton after the price surge in China this week, with other markets also experiencing increased export inquiries. Currently, due to weak domestic demand, many factories are shifting their focus to exports, and this week has witnessed several successful transactions.

Domestic HRC market:

In contrast to the export market, the domestic market remains less active this week, although there have been some small transactions resuming, the basic prices have not changed. Slow steel consumption remains the main reason hindering the expected recovery of the HRC market.

Imported HRC market:

Due to the upward trend in futures prices, export prices from China to Vietnam dominate the market with numerous HRC and HRP inquiries from both general and specialized products at various price levels. The general price trend shows an increase of 15-25 USD/ton compared to the previous week for both SS400 and SAE 1006. India has also re-entered the market with inquiries for SAE 1006, although without competitive advantage. Despite the active inquiry situation, actual transactions remain scarce.

Domestic HRC market:

The focal point of the market is Formosa's announcement of HRC pricing for November with a significant decrease ranging from 43-47 USD/ton instead of a slight reduction. Formosa's message is to regain market consumption, and this significant decrease could be a turning point for the upcoming phase. Meanwhile, domestic prices have slightly increased, and trading has improved compared to the previous week.

Construction steel market:

After nearly three weeks, factories continue to reduce production and maintain prices. At the same time, some factories have made efforts to improve exports. However, steel consumption is still slow, reflecting the persisting difficulties during this period, which may continue, requiring further adjustments and efforts from both factories and macro policies.

Pipe and box steel market:

Major players unexpectedly introduced sales policies with significant price reductions in the second half of November, resulting in an overall market adjustment. This is an effort to improve consumption as sales pressure and year-end financial pressure increase. 

Corrugated iron market:

In addition to adjustments in the pipe and box steel market, major players have also adjusted sheet prices, although the level of adjustment is somewhat lower, and the number of factories making simultaneous adjustments is limited. However, steel sheets no longer have export advantages as they primarily rely on the domestic consumption market, which is expected to undergo further fluctuations in the upcoming period.

This week, there have been certain positive developments, especially in the scrap and domestic HRC markets. However, adjustments have been proposed for the steel sheet, pipe, and box markets. For construction steel, production reduction continues, but the expected increase in consumption has not been realized. As the year comes to an end, factories must make efforts to improve consumption, and Formosa's decision to make significant reductions to gain market share is a clear indication of potential forthcoming adjustments.

Source: GiaThepton.com

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