About HRC price
HRC increased simultaneously in all markets. Within less than a month, there have been 2 – 3 increase rhythms. The price has escalated to 150 USD/MT and there is no reduction signal in the near future. Especially, in East Asia and Southeast Asia, the price offers from Japan and Taiwan have exceeded 4 digits to 1050 USD/MT CFR Malaysia. This upsurge is as an interpretation that HRC can reach level 1100 USD/MT very soon in Asean markets.
If the Asean HRC price rises to 1100 USD/MT, it will catch up with Europe quickly. However, the opportunity to export Vietnam steel coil to Europe is still there because Europe is absorbing CRC 1200 – 1250 USD/MT.
About raw material
Price indexes increase simultaneously, futures prices will increase for more 3 months then start to decrease very slightly. However, the lessening period will stretch for the next 6 months. The market will not be exploded like 2008 case cause 2021 is the case of supply shortage not of speculation.
About supply situation
EU: There is not enough information to conclude that the supply is limited but according to statistics, the inventories of big companies are lower than the normal average and there is not much allocation for early delivery.
CHINA: Output volume is still increasing due to the anticipation of increase demand and huge margin despite the efforts and measures of government to limit production. The increasing output is mainly from mills outside the Tangshan area. Shandong province also announced they will remove 21.41mn tons of capacity by 2022 and plans to relocate this capacity to coastal areas.
INDIA: JSW, TATA STEEL and SAIL plan to maintain their plants as it has been expoilted to the full throughout the past two quarters. It is likely that India will not return to Asia massively after finishing all export quota to EU.
It is expected that world steel demand in 2021 will increase by 5-8% compared to 2020 and will continue expand more 2.7% in 2022. In China, GDP in Q1 grew by 18.3% and many other countries around the world also have good domestic demand due to the rapid post-pandemic recovery. With this good economy heath, it is obvious that price will keep increasing.
Now HRC level in Vietnam is around 900 – 920 USD/MT and importers from other markets can still take advantages from Vietnam steel coil. Before Asean price follow 1100 USD/MT, if you are looking for a coated steel coil GI, GL, PPGI, PPGL from Vietnam, just feel free to contact us.
Ms. My (Business Development Department)
Phone/Whatsapp: 0084 78 324 3888