The entire media is injecting market with the news of rising and rising figures everyday, which causes huge panic for many buyers when prices are skyrocketing in a very short period of time. So is it really that price constantly escalating, what are the reasons and what appropriate preparations should buyers have in this April?
- The shortage of raw materials
The market is under serious shortage of raw materials. This is an unresolved math when we cannot have solution in one or two days. The policy of cutting production in China, the mass maintenance of factories in the US and the impact of epidemic will still keep prices at high level for a long time, and possibly through the end of this year.
- The effect of HRC India price to the market
So far Indian HRC is considered as the most competitive source now. During the past months, India focuses on EU market due to high price and high margin. However, in the first week of April, India has been nearly finished export quota to EU, which means within next fews days, India will be back to Asian market. So Vietnam price can be slow down a little bit but it is not significant. All players will follow market rule and they have no reason to sell at low price.
- Offer situation of Vietnam mills
The Vietnames downstream mills already received HRC price and allocation from Formosa Ha Tinh for third quarter. Offers range from 900 – 918 USD/MT CFR Vietnam with limted quantity and only 3 days validity to sort out the sizes. This level is 145 USD/MT higher than previous offer. So the problem about quantity is the big concern for many buyers when sourcing Vietnam steel coil.
- Non-stop increasing ocean freight
Break bulk cost will continue rising for third quarter quarter delivery due to full space. Even the container shipping cost are climbing under the pressure of hiking gasoline prices. The inflation in freight rates will have a significant impact on the final price, which causes the market to standstill.
- Other elements causing ursurge in steel price
The blockade of the Suez Canal does not only affect the freight situation, but also causes delivery delay. This is why the market is starving for goods to maintain production.
EU market is not only in the shortage of steel materials, but also of chemicals, packaging…., which leads to higher finished products price.
Moreover, the US government plans to increase corporate income tax to 28%. Once it is applied, the US market will have a new jump.
So what preparation is appropriate for this time?
Vietnam steel coil is also evaluated one of the most competitive source with good qualiy in the steel world map. But due to allocation is limited, sourcing from Vietnam becomes harder than before.
In order to know more about Vietnamese supply production status for your proper action, this information will be useful for your business: https://mrssteel.com.vn/video/steel-market-from-5th-april-to-10th-april-and-new-vietnam-hrc-price/
In order to source for coated steel coil GI, GL, PPGI, PPGL from Vietnam, it is pleasure to discuss with you through the contact:
Ms. My (Business Development Department)
Phone/Whatsapp: 0084 78 324 3888