Vietnamese domestic rebar, wire rod prices fall
Posted on 09 June 2021
Vietnamese domestic mills have cut prices for rebar and wire rod on the back of weaker demand, Kallanish notes. This marks the end of continuous price hikes in recent months.
Hoa Phat Group cut rebar prices by VND 500/kg ($22/tonne) and wire rod by VND 800/kg ($35/t) on 7 June with immediate effect. Prices in southern Vietnam are now prevailing at the equivalent of $730/t ex-works for rebar and $740/t for wire rod.
Hoa Phat's decision to lower prices comes amid a weak market and after traders and stockists had booked at lower prices from other sources, a trader says. Other Vietnamese mills have been implementing varying price corrections since last week, says a representative with another mill.
Hoa Phat’s price reduction was slower than others but appears larger, he adds. Local steel demand is being dampened by the Covid-19 outbreak, another trader says. He adds many provinces in Vietnam are under lockdown and construction activity at bigger sites is suspended or reduced.
The weaker long products market in Vietnam has also dulled import demand for scrap in Vietnam. At the same time, Vietnamese mills are sourcing more domestic scrap which is more competitive than imports. The current price for domestic grade 1 above 6mm scrap is VND 9,300/kg ($404/t) in southern Vietnam, down from the equivalent of $445/t on 27 May. “It is very quiet. With Chinese buyers staying away from the overseas scrap market, sentiment is not strong,” a Vietnamese scrap trader observes.Source : Kallanish