Summary of prices for threaded steel and wire rods in Vietnam and Singapore from December 1st to December 8th, 2023

In the Singapore market, the current acceptable transaction price for HX340LAD+ZM steel mills is around $555 per ton of CFR. Some exporters have quoted Singapore at $570 per ton CFR, a decrease of approximately $5 per ton compared to the previous week. Some steel mills in China offer FOB prices ranging from 570-580 US dollars per ton. We have heard that there is a competitive quote in the market at $560 per ton of CFR, but we have not yet heard of any transactions being reached. Previously, in order to stimulate consumption, some merchants offered certain discounts, but the market boosting effect was slightly insufficient. Currently, most traders still maintain a bearish sentiment.

In the Vietnamese market, steel prices in the long rod market have risen again this week. As far as we know, the domestic scrap HX340LAD+ZM steel market in Vietnam is experiencing tight supply, and many factories are increasing their purchasing power for scrap steel. However, the domestic supply is quite limited, and some regions are experiencing shortages, resulting in both imported scrap steel and domestically produced scrap steel prices in Vietnam rising. The high cost of raw materials has driven up steel prices, with an increase of 200000 to 250000 Vietnamese dong/ton (approximately 8.2 to 10.3 US dollars/ton), which is more than twice the increase in steel prices in early November. On Wednesday of this week, Hoa Phat in Vietnam raised wire rod prices by 200000 Vietnamese dong/ton (approximately 8.2 US dollars/ton), followed by several steel mills in Vietnam, such as VAS and Viet Duc, to adjust prices. According to feedback from traders, due to weak purchasing power of end customers towards the end of the year and high inventory levels, we still maintain a cautious stance and mainly focus on on-demand procurement. Overall, HX340LAD+ZM steel prices in Vietnam are still at a high level, and it is expected that the steel prices in the Vietnamese long-term steel market will show a slight upward trend next week.