Overview Of Vienam Steel Market From 07.11 To 11.11.2022

Imported scrap market:

The November export auction for scrap in the Kanto region failed due to a significant price gap between the bidding and asking prices. The price of H2 scrap to Vietnam has slightly decreased by 5 USD/ton, and further reductions are possible as Tokyo Steel reduces its domestic prices, along with other markets. Although scrap imports have declined, Vietnamese buyers have shown limited interest as domestic scrap has gained an advantage, coupled with issues such as steel mill production cuts and slow consumption of finished products.

Domestic scrap market:

This week, domestic scrap prices continued to witness reductions across most factories, ranging from 200-700 VND/kg. Prices in many southern factories have dropped below 7,000 VND/kg for Grade 1 scrap, while the decrease in the northern region has been slower. However, overall, the downward trend has slowed down towards the end of the week, and the return of Tuệ Minh's purchases at relatively high prices compared to the southern market brings hope for market recovery.

Export HRC market:

There were fewer inquiries and transactions this week, but basic prices increased after the price surge in China. Bids from Vietnam to Southeast Asian markets increased by 5-10 USD/ton. Additionally, there were inquiries for exports to European markets. Sellers are still actively seeking export opportunities as the domestic market operates weakly, and next week may see more active participation as the Chinese market promises a stronger recovery.

Domestic HRC market:

The domestic market remained relatively flat this week, with minor adjustments made by some major players. Most stakeholders are waiting for clearer adjustments in the Chinese market, Formosa's prices, and an improvement in domestic demand.

Construction steel market:

Prices remained stable this week, with factories aiming to improve the situation by reducing production. However, preliminary consumption data for the first ten days of November has not met expectations, indicating ongoing challenges.

Pipe and box steel market:

After a series of adjustments, there were only new sales policies introduced by SENDO this week, along with slight reductions from some factories. Most factories are still observing the market, and traders have made few adjustments, waiting for price trends in HRC and consumption patterns. There is a possibility of new adjustments next week.

Corrugated Iron market:

There were no widespread adjustments like the previous week, but there were minor adjustments in the market. The pressure on corrugated iron consumption remains high as the export market continues to show slow improvement. Domestic sheet prices may face additional pressure in the upcoming period.

The Vietnamese steel market continues to face challenges in almost all product categories. However, there have been gradual improvements, particularly in the scrap market. For other product categories, prices have remained mostly stable with minimal adjustments. If the Chinese market recovers due to adjustments in macro policies, especially in response to the pandemic, it is likely to have positive impacts on the Vietnamese market. Nevertheless, the key concerns for the Vietnamese steel market at this time are credit and purchasing power.

Source: GiaThepton.com

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