After a long period of maintaining stable prices despite various pressures, the steel prices of the factory have finally officially decreased this week, including construction steel, pipes, boxes, sheets, and so on. This has also led to a significant decline in raw material prices and finished products such as scrap, billets, and HRC. Weak purchasing power continues to be the main reason for the price decrease, but it cannot ignore the catalytic effect from the global market decline, especially China. There is a possibility that the Chinese market will improve next week, but this may not provide significant support to the Vietnamese market. The key issue in the Vietnamese steel market remains weak purchasing power and the need for credit-related changes.

Import scrap market:

The global and domestic price decline, along with weak purchasing power, has caused import prices to continue to decrease for Vietnam, including H2 from Japan, HMS from the United States, and various types of materials from Hong Kong, the EU, etc. However, import transactions continue to be scarce due to the weak market recovery prospects.

Domestic scrap market:

Due to the official price reduction of the main factory steel, scrap prices have decreased significantly, with many factories reducing prices 2-3 times a week, with the largest decrease up to 1,200 VND/kg. Some have shown a tendency to temporarily halt purchases. Merchant prices have also adjusted but not shockingly due to proactive response to the overall decrease.

Import billet market:

Weak billet prices when there are not many bidding offers in the context of a declining export market and Vietnamese sellers not having many competitive advantages. Conversely, imported billets have continued to receive bidding offers after Vietnam lifted the self-defense tax on billets since the end of March. If the imported billet market revives, the Vietnamese steel market will experience more fluctuations in the coming period.

Domestic billet market:

Prices have decreased more after the reduction in construction steel and scrap prices. In addition, domestic traders are closely monitoring the bidding prices for imported billets from China, Russia, and some Southeast Asian countries.

Import HRC market:

Long-term downward price trends have led to price reductions for SS400 and SAE 1006 from China. Japanese, Korean, and Indian sellers have made fewer bidding offers, but prices have also decreased. However, successful import transactions are not frequent due to weak purchasing power from Vietnam.

Domestic HRC market:

Hoa Phat has slightly reduced HRC prices instead of increasing like Formosa. This, along with the downward price trend and the decrease in domestic finished steel prices, has led to a larger adjustment in HRC prices.

Export construction steel market:

Vietnamese sellers seem reluctant to accept lower export bids after the market decline. Therefore, the bidding market is almost absent.

Domestic construction steel market:

Hoa Phat and most factories have officially reduced prices after a period of maintaining official prices. Merchant prices have also decreased significantly, and the billet and scrap markets have been affected by this adjustment.

Pipe and box market:

The price reduction policy and recovery have shown that the factories cannot maintain the previous official prices. Merchants have also reduced prices, even for brands that the factories have not reduced.

Corrugated iron market:

Similar to pipes and boxes, the price reduction policy and recovery have appeared in the sheet market, although Hoa Sen has not yet implemented specific policies. Merchants have also reduced prices and are waiting for further actions from the factories next week.

Source: Giathepton.com