According to the Vietnam Steel Association (VSA), fluctuations in hot rolled coil prices are causing significant difficulties in the domestic market. This situation requires a review of production and sales strategies and a reassessment of the balance of the steel market by industry players.
Data from the Vietnam Steel Association (VSA) shows that as of mid-May, the average price of hot rolled coil stood at USD 542 per ton, down USD 33 per ton from March. The decrease also represents a notable slowdown compared to the beginning of 2023.
Vietnam has only two enterprises capable of producing hot rolled steel: Hoa Phat and Formosa. For Hoa Phat in particular, sales volumes are still increasing compared to the same period last year, with a slight decrease compared to March. Hoa Phat sold 252,000 tons of hot rolled coil in April, an increase of 5.4% compared to the same period last year. However, this figure was down 3% compared to March. During this period, raw material price hikes and high production costs are putting factories in a difficult situation.
Hoa Phat lowered its list selling prices for local hot rolled coil by around USD 9/ton in the first week of June. Offers for the company's SAE1006 or SS400 grade hot rolled coil were set at around USD 568/ton CFR South Vietnam, excluding VAT.
The impact of China's hot rolled steel sales to Vietnamese and global markets on local demand is also an important issue. Producers are aiming to increase export volumes to offset the decline in domestic demand and maintain production activities.
Along with the challenges facing producers, the hot rolled steel market in Vietnam is also struggling with high levels of circulating steel stocks.
Comments
No comment yet.