The asking price of imported HRC (hot rolled coil) for the Vietnamese market has increased by about 30-60 USD/ton compared to last week.Supply constraints from two exporters China and India amid production cuts and rising domestic Chinese HRC prices pushed up asking prices.However, the demand in Vietnam's domestic market continues to remain at a relatively low level compared to imported HRC.Asking price of HRC steel from India and ChinaSupply constraints push up asking prices despite low buying interestCurrently, the market is conflicted by offers from Japan, Korea and Russia, while Chinese and Indian factories have reduced output, leading to tight supply.Chinese factories are producing less to meet slowing demand and low margins, while maintaining a push towards carbon neutrality.Meanwhile, factories in India have opted to shut down for maintenance, to meet limited demand in both domestic and overseas markets.At the same time, the country is continuously reducing supply prices until the end of July.As a result, mills from India and China are both eyeing higher offers, with tightening export allocations and improving the situation in the domestic market.While the domestic trade price of HRC in India is stabilizing, a positive improvement can be seen from China.China's domestic HRC price increased due to rising steel futures: China's domestic HRC price on 8/8 increased by 60 yuan/ton to 4,050 yuan/ton from 3,990 yuan/ton on August 5 (Based price) Tianjin suburban office, 13% VAT included)In addition, China's HRC SHFE futures rose 76 yuan/ton to 4,066 yuan/ton on August 8, compared with 3,990 yuan/ton on August 5.This also increased 22 yuan/ton from 4,044 yuan/ton on August 1.This uptrend also spurred sales orders from Chinese factories.Vietnam's 'end-user' demand has not increased: Demand from the domestic market in Vietnam has not increased.Buying interest is affected by various factors:- Supply has been continuously decreasing in China since April and in India since May this year.- Vietnam's economy recovers slowly from the third and fourth Covid waves that last through 2021.- Reducing the value added of exports of HDG (galvanized steel) to the US and Europe due to inflationary pressure in the previous regulations and quota restrictions from the following regulations.In addition, the arrival of monsoons is currently keeping demand in check with limited activity from the construction sector.This also affects the demand for Gold (raw material for construction equipment) along with demand from the heavy commercial vehicle (HCV) segment.Hoa Phat's output and revenue decreased in July:Consumption volume (including construction steel, HRC and billet) decreased by 6% month-on-month to 526,000 tons compared to 560,000 tons in June 2022. In addition, the company's crude steel output fell 3% to 600,000 tons in July compared with 621,000 tons in the previous five months.This shows a low level of buying interest even from domestic producers.Hoa Phat's steel output and sales in the first 7 months of 2022Starting with the Southeast monsoon further dampening demand, already reeling under the impact of value-added steel products imposed under EU country-specific quarterly quotas.HRC sales in July fell to 150,000 tons from 202,000 tons the previous month.HRC downstream products such as steel pipe and galvanized sheet reached 78,000 tons, steel pipe alone was 60,000 tons, up 38% over the same period.Hoa Phat's HRC steel sales in the first 7 months of 2022Accumulated 7 months, Hoa Phat Group has produced 4.9 million tons of crude steel, up 5% over the same period in 2021. Consumption of construction steel, billet and HRC hot rolled coil reached over 4.5 million tons of steel of all kinds, up 5% over the same period in 2021;in which, construction steel is 2.7 million tons, up 25%;HRC production contributed nearly 1.6 million tons, up 6% compared to 7 months of 2021.Short-Term Outlook: Buyers in Vietnam are now eyeing price announcements for the October and early November sales that are likely to be made in the next week.In addition, supply constraints from India and China in the context of production cuts are likely to keep the supported offers from these countries in the near future.© To Quoc Online Newspaper was established on September 1, 2006 Management agency: Ministry of Culture, Sports and Tourism License for specialized page No. 04/GP-CBC issued by the Press Department, Ministry of Information and Communications Issued on May 31, 2019.Editor-in-Chief: NGUYEN THI HOANG LANEditorial office: No. 20, lane 2, Hoa Lu street, Hai Ba Trung district, Hanoi.Phone: 024.3 9745846/47 (ext. 402) /024.3 9742817Contact for advertising: 091.358.6788Hotline: 091.259.9909/ 0901.22.33.66E-mail: toasoan@toquoc.gov.vn170 Nguyen Dinh Chieu, Ward 6, District 3, HCMC58 Phan Chu Trinh, Hai Chau District, Da Nang City© Copyright 2020 Toquoc Online, All rights reserved ® All copyrights belong to the National Electronic Newspaper