The Companion is the Financial Information page of the Rhythm Live Digital Magazine under License No. 197/GP-BTTTT issued by the Ministry of Information and Communications on April 19, 2016.Specify the source of “Companion” when re-publishing information from this portal.Metal CommoditiesSupply constraints from two exporters China and India amid production cuts and rising domestic Chinese HRC steel prices pushed up asking prices.Demand in Vietnam's domestic market continues to remain at a relatively stable level.The asking price of HRC (hot rolled coil) imported to Vietnam 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, demand in Vietnam's domestic market continues to remain relatively low compared to imported HRC.Asking price of HRC steel from India and China.Supply 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, in response to 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 the increase in steel futures price: 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 figure 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 continuously decreased in China since April and in India since May this year.- Vietnam's economy recovers slowly after the third and fourth Covid waves that lasted through 2021.- Reduced value added of HDG (galvanized steel) exports to the US and Europe due to inflationary pressures 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 2022.Starting with the Southeast monsoon further dampening demand, which has already reeled 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 2022.Accumulated in 7 months, Hoa Phat Group has produced 4.9 million tons of crude steel, up 5% compared to 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.Please select one item before votingThe US believes that Vietnam imports hot-rolled steel (HRS) from China, Taiwan - China, Korea, and India and then processes it, simply processing it into steel pipes and exporting to this market.Commodities last week: Steel prices fell for the 12th time in a row, gasoline fell to 25,600 VND/liter, gas dropped by nearly 20,000 VND/can. For the 12th time in a row, domestic construction steel prices fell 200,000 VND/ton.No. 1C Ngo Quyen, Hoan Kiem, HanoiThe Companion is the Financial Information page of the Rhythm Live Digital Magazine under License No. 197/GP-BTTTT issued by the Ministry of Information and Communications on April 19, 2016.Specify the source of “Companion” when re-publishing information from this portal.