Due to seasonal and economic difficulties in China, producers are forced to offer lower prices to Vietnamese customers. According to market analysts, HRC contracts on China's Shanghai Futures Exchange fell by USD 4.5/ton due to lower raw material prices, leading to lower offers to Vietnam.
It is also reported that the demand from buyers in Vietnam has slightly increased following the drop in prices. Earlier this week, more than 10,000 tonnes of HRC Q195 grade were sold from China to Vietnam at $531/t CFR for June delivery.
Currently, offers are showing a downward trend compared to last week. This week's offers for July delivery were recorded as follows:
HRC Q195 $525/t CFR Vietnam
HRC Q235 $528/t CFR Vietnam
HRC SAE1006 $545/t CFR Vietnam
In the Chinese steel market in general, prices have been fluctuating this week. Market analysts said that the situation in the market is not favourable due to the decline in long product prices. Producers' long product stocks declined compared to last week. On the other hand, both production and stocks of flat products decreased. Trade activities also decreased compared to last month due to seasonal and economic problems in the country. According to data released by CISA, average daily crude steel production fell by 0.4% to 2.19 million tonnes in early May, while steel stocks increased by 2.5% to 16.28 million tonnes.
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