Vietnamese rebar market slow
2023-03-24 07:39:59 [Print]
EIJING (Asian Metal) 24 Mar 23 - Though rebar prices in Vietnam were pulled up slightly this week supported by rising cost, the market performed inactively due to weak demand from downstream clients. Currently the mainstream prices of rebar CB400V Φ14-32mm hover at VND15,600,000-15,900,000/t (USD655-668/t) Ex-VAT, up by around VND115,000/t (USD5/t) from one week ago. Upon slow market performance but firm cost, insiders predict rebar prices in Vietnam would keep flat in the coming week.
A producer in North Vietnam revealed that most clients delayed purchasing activities this week, seeing the price decline in China. "We remained inactive in production due to high cost but limited demand from clients, and we only operated 70% of the production capacity in March, down from 80% in February," he reported, adding that he quoted VND15,700,000/t (USD659/t) Ex-VAT without concessions for rebar CB400V Φ14-32mm on Thursday and sold around 500t of the material at this price. He last sold around 1,200t of the material at VND15,500,000/t (USD651/t) to a regular client late last week. He predicts flat rebar prices in the coming week upon firm cost but slow market performance.
The company owns an annual production capacity of 750,000t for rebar and produced about 75,000t of rebar in the first two months of this year. It recorded an output of nearly 550,000t in 2022. It would produce roughly 350,000t of the material in March, down from 40,000t in February. It holds an inventory of almost 20,000t currently.
A consumer in South Vietnam told that he remained cautious in restocking this week. He only has an inventory of about 50t at present, down by 100t from one month ago. He got an offer from his supplier of VND15,800,000/t (USD664/t) Ex-VAT without concessions for rebar CB400V Φ14-32mm on Thursday, but he refused to place orders, worrying he might buy at a high point. "My supplier could accept bids no less than VND15,685,000/t (USD659/t) late last week," he reported, adding that the demand did not show any signs of growing this month though producers kept hiking prices on rising cost. Given this situation, he deems rebar prices would stabilize in the coming week.
The company, reporting an annual consumption capacity of 18,000t for rebar, used approximately 13,000 of the material in 2022. It would use about 100t of rebar in March, down by around 50% YoY.
A producer in North Vietnam revealed that most clients delayed purchasing activities this week, seeing the price decline in China. "We remained inactive in production due to high cost but limited demand from clients, and we only operated 70% of the production capacity in March, down from 80% in February," he reported, adding that he quoted VND15,700,000/t (USD659/t) Ex-VAT without concessions for rebar CB400V Φ14-32mm on Thursday and sold around 500t of the material at this price. He last sold around 1,200t of the material at VND15,500,000/t (USD651/t) to a regular client late last week. He predicts flat rebar prices in the coming week upon firm cost but slow market performance.
The company owns an annual production capacity of 750,000t for rebar and produced about 75,000t of rebar in the first two months of this year. It recorded an output of nearly 550,000t in 2022. It would produce roughly 350,000t of the material in March, down from 40,000t in February. It holds an inventory of almost 20,000t currently.
A consumer in South Vietnam told that he remained cautious in restocking this week. He only has an inventory of about 50t at present, down by 100t from one month ago. He got an offer from his supplier of VND15,800,000/t (USD664/t) Ex-VAT without concessions for rebar CB400V Φ14-32mm on Thursday, but he refused to place orders, worrying he might buy at a high point. "My supplier could accept bids no less than VND15,685,000/t (USD659/t) late last week," he reported, adding that the demand did not show any signs of growing this month though producers kept hiking prices on rising cost. Given this situation, he deems rebar prices would stabilize in the coming week.
The company, reporting an annual consumption capacity of 18,000t for rebar, used approximately 13,000 of the material in 2022. It would use about 100t of rebar in March, down by around 50% YoY.
