Weak consumer demand in Vietnam may slow down the steel industry

The Chinese government's efforts to decrease iron ore prices could help manufacturing businesses in Vietnam by decreasing cost pressures. However, the steel industry still faces challenges due to weak consumption demand in Vietnam. Investments in social housing projects and public infrastructure in the future may support manufacturers' efforts to overcome these challenges. Vietnamese steel companies are currently keeping their stocks at a low level, which may allow them to better control gross profit margins compared to the previous quarter.

In the metal market, platinum and silver prices increased, while copper and iron ore prices decreased due to weak manufacturing activity in major economies such as the US and Europe. The recovery of COMEX and LME stocks is gradually decreasing supply pressure in the copper market, which is also weakening price momentum. The Shanghai Futures Exchange has decreased margin and trading limits for base metals, stainless steel, and silver from April 6, 2023. The fund level for copper and aluminum will be decreased from 12% to 9%, and for nickel, it will be decreased from 19% to 12%.