Recovery hopes at the beginning of 2023

There were still many challenges facing the steel market at the end of 2022, but the more difficult the market, the more hope there was, especially when a series of price increase announcements were made from scrap to steel products. In addition, the recovery of the global market and the strong growth of the import-export market at the end of 2022 are also key elements in pushing the recovery of the Vietnamese steel market earlier in the year 2023.

Import scrap market:

Scrap supply is low while global demand for scrap increases, so scrap prices show signs of inching up. Scrap offers to Vietnam continue to increase and are expected to increase more clearly in early 2023. This could impact the domestic scrap market, which is also showing signs of increasing again.

Domestic scrap market:

The downtrend has been stopped, and a rising trend has appeared after the increase in billet prices and various steel products. In addition, the increase in imported scrap combined with the adjustment of Shengli, Vietnhat, and the continued strong demand for domestic scrap are expected to lead to a slight increase in scrap prices in the first of 2023.

Export billet market:

Asking prices continue to rise slightly and maintain high prices this week as the global billet market has recovered in most big markets. Vietnamese sellers have been very active in the global market in recent months, so exports are increasing again.

Domestic billet market:

Prediction of price increases in the begining of 2023 have driven up prices and billet transactions this week. Due to the increasing of billet so the scrap rises and the market has opportunities to expect

Import HRC market:

Asking prices have risen again and there have been more transactions, indicating the recovery of the market, especially when futures prices have risen and many global HRC markets are also increasing prices. It is expected that the market will improve further in the early months of 2023.

Domestic HRC market:

Supportive elements for price increases have appeared, so it is likely that the domestic market will increase slightly in the early months of 2023, especially when products such as boxes and pipes have increased in price. The decreasing domestic HRC stock and the reduced allocation of Formosa and Hoa Phat for the domestic market are also factors that will soon lead to the recovery of the domestic market.

Construction steel market:

December's steel consumption for construction by mills has significantly improved compared to November 2022. This, with the rising prices of steel products, scrap, and billets, opens up many opportunities for the price increase of the construction steel market in the first of 2023.

Pipe and box steel market:

Many mills have announced price increases in the first of 2023, such as Hoa Phat Binh Duong, Hoa Sen, SENDO, Vina One, etc. There is a high possibility that the pipe and box steel market will increase slightly, this is a positive start to the new year   

Corrugated iron market:

Similar to pipes and boxes, the big companies such as Hoa Sen, Nam Kim, Dong A, Hoa Phat, Phuong Nam, Viet Phap have announced price increases for corrugated iron next week. Therefore, it is almost certain that the corrugated market will start the year 2023 with a rising trend.