[SMM Steel] Vietnam Steel Market Stable as Domestic Demand Gains Support

HRC futures closed at 3,286 today, gaining 0.4% for the full day. In the spot market, spot HRC prices edged up 10 yuan/mt while remaining largely stable, cold-rolled prices were flat, and overall trading was moderate today. HRC city inventory data was released today: inventories in Zhangjiagang, Shanghai, Ningbo, and Tangshan built up, while those in Lecong and Shenyang saw slight destocking. Overall, HRC social inventory is expected to build up this week. Cost side, expectations for price hikes in coking coal and coke are heating up, strengthening the support from raw materials for HRC’s bottom. Steel mills have become somewhat more inclined to hold prices firm. However, end-use demand has yet to improve materially, capping upside room. In the short term, HRC lacks a directional driver. The futures market is trading on expectations for the September peak season. The upside is pressured by weak demand, while the downside is cushioned by costs. Prices are most likely to continue moving sideways.

Finnish stainless steel producer Outokumpu has inaugurated a new biocoke agglomeration plant in Tornio with an investment of approximately USD 35 million. The facility processes biochar into biocoke to replace fossil coke in ferrochrome production and could reduce annual carbon dioxide emissions by up to 82,000 tonnes at full capacity. The project supports Outokumpu's target of cutting value-chain carbon dioxide emissions by 42% by 2030 from 2016 levels.

[Malaysia] Malaysia’s domestic HRC transaction price was heard at around USD 519/tonne EXW, up by about USD 5/tonne from roughly USD 514/tonne last week. Despite the modest increase, market participants reported continued weak downstream demand for both HRC and CRC, with transaction volumes remaining low. Buyers are still purchasing mainly on a need-to-use basis, keeping overall market activity subdued.