Overview Of Vienam Steel Market From 30.10 To 04.11.2022

Scrap Import Market:

The export prices of scrap from Japan have decreased due to the weakening domestic market in the country and price reductions in South Korea. Not only has the price of H2 decreased, but the high-end scrap prices from Japan have also declined. In other markets, the prices of imported scrap have also decreased. Importantly, buyers from Vietnam are still staying out of the transactions as the domestic market is declining and the domestic scrap prices are decreasing faster.

Domestic Scrap Market:

This week, domestic scrap prices continue to decline sharply as consecutive adjustments are made by mills, especially in the southern region. Many mills have reduced prices 2-3 times and the reductions occur continuously or deeply after each adjustment. The trader prices have also decreased rapidly, and transactions have tightened with great caution from market participants.

Export Billet Market:

Due to pressure from China's price reductions and limited improvements in demand, Vietnamese mills have had to continue with slight reductions in billet prices, but there are few prospects for successful competition against Chinese billets.

Domestic Billet Market:

After a slight increase in the previous week, billet prices have decreased correspondingly this week, and trading has become quiet. Although scrap prices have decreased significantly, billet prices have decreased slowly and are showing signs of stabilizing, partly because there are very few transactions in the market.

Import HRC Market:

Futures prices decreased at the beginning of the week and gradually increased afterward. However, due to slow changes in demand in China, Chinese sellers have aggressively offered prices with various options, and the overall price level is low. Nevertheless, buyers from Vietnam are mostly staying out of the market due to large domestic inventories and decreasing domestic prices.

Domestic HRC Market:

After maintaining stable prices in the previous week, domestic HRC prices have experienced a simultaneous downward adjustment this week, even though retail prices were lower than import prices. The market is still trading weakly, so the pressure on traders has not been relieved.

Construction Steel Market:

Mills are trying various ways to maintain stable prices to strengthen buyer confidence by increasing discounts and support. However, the decreasing scrap, billet, and export prices are making the situation more difficult.

Tube and Box Steel Market

The policies implemented in November have included many adjustments by Hoa Phat, Hoa Sen, and other mills, but these adjustments may continue as consumption has not met expectation

Corrugated iron Market:

Compared to tube and box steel, corrugated iron has witnessed fewer adjustments, especially from large mills like Hoa Sen. Therefore, there is a possibility that the remaining major players will introduce adjustments in the coming week.

Tightening credit and consumption constraints are making the market increasingly challenging. Even though the Chinese steel market has shown positive signals and many mills have reduced production, steel demand remains weak, leading to overall price reductions. The market will continue to fluctuate in the coming week, and if the recovery in China is strong enough, there may be some hope for the Vietnamese market.

Source: Giathepton.com

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