Vietnamese HRC demand sluggish
2023-04-14 08:22:08 [Print]
BEIJING (Asian Metal) 14 Apr 23 - Dragged by the weak demand from downstream industries, the HRC market in Vietnam performs inactively at the moment. The current mainstream prices of HRC SS400 5.0mm*1,250mm*C hover at VND16,000,000-16,700,000/t (USD683-715/t) D/P in warehouse Hanoi, down by VND200,000/t (USD8/t) from late last week. Given the dim market, insiders foresee further price decline in the coming several days.
"The demand from downstream industries remains soft and may shrink further under the unpromising economy. Most participants adopt pessimistic attitudes towards the market prospect. Besides, the inventories increased with the influx of materials ordered in February," noted a local trader. "We found it hard to develop new customers now and even regular clients tend to separate purchasing volumes discouraged by the downward price trend," added the trader, who just sold 30t of HRC SS400 5.0mm*1,250mm*C at VND16,700,000/t (USD715/t) on Thursday, while insisted on VND16,900,000/t (USD721/t) late last week. Meanwhile, he pointed out that some clients even bid for VND13,800,000/t (USD590/t) on the basis of imported HRC from China, and he refused. Upon the low purchasing activities of downstream customers in the rainy season, the trader deems prices of HRC might edge down in the coming several days.
Based on the typical monthly sales volume of 6,000t, the trader would sell 3,000t in April, down from 4,000t in March. He roughly sold 11,000t in the first quarter of 2023 and 48,000t in 2022. Presently, the trader does not hold any stock.
"The whole industry goes through tough time now, and we do not expect for improving demand in the rainy season. Discouraged by the capital pressures, some peers even sell materials at prices lower than purchasing costs," sighed another local trader. According to him, the reduced electrical products exports lead to the shrinking demand for HRC. Besides, the downward price trend in China weakened the purchasing activities of downstream customers to some degree. "With confidence in the market prospect, traders supplemented inventories actively in February, and the market stocks increased quickly this month, forcing traders to cut prices in succession to withdraw capitals," added the trader, who sold 500t of HRC SS400 5.0mm*1,250mm*C at VND16,000,000/t (USD683/t) on Thursday, while refused to sell at prices below VND16,200,000/t (USD691/t) late last week. "Our sales volume in April would reduce by 30% compared with March," noted the trader. Taking the slow market into consideration, he predicts price decline of HRC in the forthcoming several days.
With the regular sales volume of 20,000tpm, the trader estimates that the sales volume would achieve 14,000t in April, down from 20,000t in March. He roughly sold 50,000t in the first quarter of 2023 and 240,000t in 2022, without any stock at the moment.
"The demand from downstream industries remains soft and may shrink further under the unpromising economy. Most participants adopt pessimistic attitudes towards the market prospect. Besides, the inventories increased with the influx of materials ordered in February," noted a local trader. "We found it hard to develop new customers now and even regular clients tend to separate purchasing volumes discouraged by the downward price trend," added the trader, who just sold 30t of HRC SS400 5.0mm*1,250mm*C at VND16,700,000/t (USD715/t) on Thursday, while insisted on VND16,900,000/t (USD721/t) late last week. Meanwhile, he pointed out that some clients even bid for VND13,800,000/t (USD590/t) on the basis of imported HRC from China, and he refused. Upon the low purchasing activities of downstream customers in the rainy season, the trader deems prices of HRC might edge down in the coming several days.
Based on the typical monthly sales volume of 6,000t, the trader would sell 3,000t in April, down from 4,000t in March. He roughly sold 11,000t in the first quarter of 2023 and 48,000t in 2022. Presently, the trader does not hold any stock.
"The whole industry goes through tough time now, and we do not expect for improving demand in the rainy season. Discouraged by the capital pressures, some peers even sell materials at prices lower than purchasing costs," sighed another local trader. According to him, the reduced electrical products exports lead to the shrinking demand for HRC. Besides, the downward price trend in China weakened the purchasing activities of downstream customers to some degree. "With confidence in the market prospect, traders supplemented inventories actively in February, and the market stocks increased quickly this month, forcing traders to cut prices in succession to withdraw capitals," added the trader, who sold 500t of HRC SS400 5.0mm*1,250mm*C at VND16,000,000/t (USD683/t) on Thursday, while refused to sell at prices below VND16,200,000/t (USD691/t) late last week. "Our sales volume in April would reduce by 30% compared with March," noted the trader. Taking the slow market into consideration, he predicts price decline of HRC in the forthcoming several days.
With the regular sales volume of 20,000tpm, the trader estimates that the sales volume would achieve 14,000t in April, down from 20,000t in March. He roughly sold 50,000t in the first quarter of 2023 and 240,000t in 2022, without any stock at the moment.
