Domestic rebar prices in Vietnam have been steady amid weak demand during the lockdown in Ho Chi Minh City this week, while active billet export sales have been easing local sales pressure.

         The listed price for standard CB400-V/CB500-V rebar of 12-25 mm diameter stands at Dong 15,800/kg ($697/mt), ex-works Phu My actual weight, and Dong 16,300-16,500/kg ($716-$725/mt) ex-works Vung Tau actual weight, excluding value-added tax, unchanged week on week, according to two local mill sources.

         Uncertainty around COVID-19 has remained to be a major factor that affects Vietnam domestic economic activities as well as steel demands. Market sources cited that there were no further changes on the lockdown which was previously expected to relax after Sept. 15.

         According to Duong Anh Duc, vice chairman of the municipal People's Committee, Ho Chi Minh City plans to continue enforcing social distancing orders after Sept. 15 in response to the sustained threat of COVID-19.

         Though the strict measure of the pandemic has affected Vietnam's domestic steel demand, some mills have discovered export opportunities for rebar and billet to relax local sale pressure.

         A total of eight Vietnam billet export deals have been disclosed to China market in the past five business days for above 80,000 mt of total volume. The highest billet deal Platts report was at $665/mt FOB Vietnam on Sept. 8.

         With further active China import billet trading activities, one Vietnam mill has sold out its November shipment on Sept. 10. Strong purchasing interest, large volumes of trades, and high acceptable prices have driven Vietnam domestic scrap prices up, said a mill source.

         Some market sources were talking that it might also push domestic rebar prices up. While one source in Vietnam said that it would likely happen after social distancing in the country.

-- Steel Business Briefing