Vietnamese HRC market slow
2024-03-27 08:29:46 [Print]
BEIJING (Asian Metal) 27 Mar 24 - Dragged by the sluggish demand from downstream industries, the HRC market performs inactively in Vietnam this week. The current mainstream prices of HRC SS400 3.0mm*1,250mm*C hover at VND14,600,000-15,200,000/t (USD589-613/t) D/P in warehouse Hanoi, similar to late last week. Insiders foresee narrowly stable prices in the following several days upon the watchful atmosphere in the market.
"With the influx of new materials, we face rising sales pressure. However, the demand from downstream industries remains soft, and end users keep cautious about purchasing upon the frequent price fluctuations in China," complained a local trader, quoting VND14,900,000/t (USD601/t) D/P without concession for HRC SS400 3.0mm*1,250mm*C. He sold 20t of the material at VND14,900,000/t (USD601/t) on Tuesday, and last sold 30t at the same price last Friday. According to him, facing the severe competition from China, local steel mills moved down HRC ex-works prices in succession, heightening the wait-and-see attitudes of local end users to some degree. The trader tends to maintain prices flat seeing the losses and predicts stable prices of HRC in the coming several days.
Presently, the trader holds around 3,000t in inventory, up from 2,000t in early February. With the typical monthly sales volume of 1,000t, the trader would sell more or less 900t of HRC in March and 2,300t in the first quarter of 2024. He recorded the sales volume of around 8,000t in 2023.
Another local trader confirms the slow market. "End users refuse to build stocks upon the continuous price declines of local steel mills. We did not conclude any deals on Tuesday, and sold 100t of HRC SS400 3.0mm*1,250mm*C at VND15,200,000/t (USD613/t) on Monday, " noted the trader. According to him, reporting shrinking orders for exports, downstream customers remain inactive in purchasing HRC. Besides, prices in China keep fluctuating, weakening the purchasing enthusiasms of local clients. Nevertheless, given the stabilized prices of raw materials such as iron ore and coking coal, the trader refuses to decrease prices of HRC and believes HRC prices would keep flat in the coming several days. "The demand may improve gradually with infrastructure projects resuming production in April," he added.
Based on the typical monthly sales volume of 6,000t, the trader estimates that the sales volume would achieve approximately 4,000t in March, against 3,000t in February. He roughly sold 47,000t of HRC in 2023 and might sell 12,000t in the first quarter of 2024. The trader does not hold any inventories for the moment.
"With the influx of new materials, we face rising sales pressure. However, the demand from downstream industries remains soft, and end users keep cautious about purchasing upon the frequent price fluctuations in China," complained a local trader, quoting VND14,900,000/t (USD601/t) D/P without concession for HRC SS400 3.0mm*1,250mm*C. He sold 20t of the material at VND14,900,000/t (USD601/t) on Tuesday, and last sold 30t at the same price last Friday. According to him, facing the severe competition from China, local steel mills moved down HRC ex-works prices in succession, heightening the wait-and-see attitudes of local end users to some degree. The trader tends to maintain prices flat seeing the losses and predicts stable prices of HRC in the coming several days.
Presently, the trader holds around 3,000t in inventory, up from 2,000t in early February. With the typical monthly sales volume of 1,000t, the trader would sell more or less 900t of HRC in March and 2,300t in the first quarter of 2024. He recorded the sales volume of around 8,000t in 2023.
Another local trader confirms the slow market. "End users refuse to build stocks upon the continuous price declines of local steel mills. We did not conclude any deals on Tuesday, and sold 100t of HRC SS400 3.0mm*1,250mm*C at VND15,200,000/t (USD613/t) on Monday, " noted the trader. According to him, reporting shrinking orders for exports, downstream customers remain inactive in purchasing HRC. Besides, prices in China keep fluctuating, weakening the purchasing enthusiasms of local clients. Nevertheless, given the stabilized prices of raw materials such as iron ore and coking coal, the trader refuses to decrease prices of HRC and believes HRC prices would keep flat in the coming several days. "The demand may improve gradually with infrastructure projects resuming production in April," he added.
Based on the typical monthly sales volume of 6,000t, the trader estimates that the sales volume would achieve approximately 4,000t in March, against 3,000t in February. He roughly sold 47,000t of HRC in 2023 and might sell 12,000t in the first quarter of 2024. The trader does not hold any inventories for the moment.
