POSCO-Vietnam holds CRC prices stable temporarily
2016-06-17 09:05:59 [Print]
BEIJING (Asian Metal) 17 Jun 16 - Being located in Ho Chi Minh City, POSCO-Vietnam CO., Ltd is one of major CRC producers in Vietnam. The company tried to keep CRC prices stable for June production in the past week, even though prices of HRC kept falling in the past month. However, the company is worried about the sales performance and predicts a slight price decrease in the near future seeing the shrinking demand from downstream consumers.
A source from POSCO-Vietnam revealed that the ex-works price of CRC SPCC 1.0mm*1,219mm*C is USD520/t VAT excluded, similar to that of last month. “We totally lifted price by about USD120/t in April and May, while the import price for HRC fell by about USD50/t in the past month and it has moved down by about USD140/t since the end of April. As a consequence, our customers wanted us to lower CRC prices,” said the source, explaining that the company received more orders from importers in the past month, which released some pressure for domestic selling to some degrees. The company has an inventory of 10,000 tons for the time being, which is lower than the regular level of 30,000 tons in Q1 of this year.
However, the source revealed that producers in Vietnam are worried about the market outlook as it is the rainy season in South of the country. “If most customers refuse to place orders or reduced their orders sharply, I think the price will come down a little bit,” said the source.
The source revealed that the company’s production capacity is about 1.2 million tons per year and now all production lines are in operation with full capacity. Its output was about 90,000 tons in May.
A source from POSCO-Vietnam revealed that the ex-works price of CRC SPCC 1.0mm*1,219mm*C is USD520/t VAT excluded, similar to that of last month. “We totally lifted price by about USD120/t in April and May, while the import price for HRC fell by about USD50/t in the past month and it has moved down by about USD140/t since the end of April. As a consequence, our customers wanted us to lower CRC prices,” said the source, explaining that the company received more orders from importers in the past month, which released some pressure for domestic selling to some degrees. The company has an inventory of 10,000 tons for the time being, which is lower than the regular level of 30,000 tons in Q1 of this year.
However, the source revealed that producers in Vietnam are worried about the market outlook as it is the rainy season in South of the country. “If most customers refuse to place orders or reduced their orders sharply, I think the price will come down a little bit,” said the source.
The source revealed that the company’s production capacity is about 1.2 million tons per year and now all production lines are in operation with full capacity. Its output was about 90,000 tons in May.
