According to the Vietnam Steel Association (VSA), the lower-than-expected demand during the construction season and rising raw material costs are pushing producers to increase their export volumes to balance production and business plans.
FHS has offered prices for SAE 1006 grade hot rolled coil ranging from 560 to 572 USD/ton cfr Ho Chi Minh City, depending on the tonnage. These new prices are approximately 15 USD/ton lower than the prices for July shipments, reflecting the current market conditions.
A trader from Hanoi noted that the prices offered by FHS are reasonable for both buyers and FHS, but highlighted the difficulties in selling hot rolled and coated coils in export markets. Issues such as quota problems in the EU and a slowing Mexican market are creating challenges for exporters, while cheap cargoes from China are also being offered to ASEAN countries, increasing competition.
Another Vietnamese trader mentioned that the 560 USD/ton cfr selling price from FHS is competitive but only available to large-volume customers.
Producers are planning to increase export volumes to balance their production and business plans. Efforts to maintain market share and imports from traders are further intensifying competition among factories, making the market very challenging.
Fluctuations in raw material prices are slowing down buying and selling activities due to fears that prices will continue to drop. Despite the increase in prices of ore, coal, and scrap materials in April, high production costs are putting factories in a difficult position.
In recent weeks, offers for 2mm and above SAE 1006 hot rolled coils from China have been hovering around 555-560 USD/ton cfr Vietnam. Despite the increase in raw material prices, buying and selling are slowing down due to fears of continued price drops.
These developments in the Vietnamese steel market indicate that producers and traders are facing a challenging period, with increased competition in both domestic and export markets.
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