Vietnam expected to announce incentive package, flats market still weak

The Vietnamese government has lately announced that it may increase state investment to boost consumption to achieve six percent year-on-year growth in the economy, and this has boosted hopes for the country's construction industry. However, the Vietnamese steel market is still weak. Hot rolled coil (HRC) demand in Vietnam is particularly poor and Russian mill MMK's HRC offers have failed to attract Vietnamese buyers' attention so far.
 
HRC domestic prices in Vietnam have declined as compared to previous weeks to VND 14.5-14.7 million/mt (about $635-640/mt + VAT), while cold rolled coil (CRC) prices in the local Vietnamese are still at VND 18.6-18.7 million/mt (about $800-805/mt + VAT), both including VAT.
 
On the import side, Chinese HRC offers to Vietnam are at $625-630/mt CFR, while MMK production 2 mm re-rolling HRC offers have declined by $15/mt as compared to previous weeks to $620-630/mt CFR.