In its latest domestic hot rolled coil price allocations on April 1st, Hoa Phat Dung Quat reduced list selling prices by approximately $40 per ton.
The company's offers, excluding VAT, for SAE1006 or SS400 grade hot rolled coils scheduled for delivery in June were set at around $550 per ton CFR in South Vietnam.
Market weakness, stemming from recent slowdowns in the construction sector and the postponement of some major projects, has led to a decline in demand for hot rolled coils in Vietnam.
Vietnam's hot rolled coil import market is also experiencing a continued downturn, coupled with negative trends in the Chinese futures market. Active suppliers in the market are lowering prices in an effort to maintain demand with low-priced sales offers. Imports from China are creating increased competition in the Vietnamese market. Despite recent recoveries in steel futures contract prices, imported product prices remain lower than Hoa Phat's prices.
Hoa Phat believes that the price decline is temporary and expects the market to recover soon. The company is focusing on reducing production costs and developing new markets to adapt to challenging market conditions.
Experts predict that the hot rolled coil market in Vietnam will continue to remain unstable in the near future. Market recovery will depend on developments in the construction sector and trends in global steel prices.
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