Construction iron and steel prices decreased on the Shanghai Exchange
Steel price for delivery in May 2024 on the Shanghai Exchange decreased by 35 yuan to 3,860 yuan/ton.
Iron ore prices fell on Jan. 5 underpinned by lingering hopes for further stimulus measures and renewed need for stockpiles by steelmakers in top consumer China, despite marginal gains. Falling steel profits limited gains.
as tepid short-term demand and a higher-than-expected build in portside inventories in top consumer China weakened investor sentiment and dampened demand for key steelmaking raw materials. important.
May iron ore futures on China's Dalian Commodity Exchange (DCE) closed 1.38% lower at 1,000 yuan/ton ($139.56/ton), ending week with an increase of nearly 3%.
Standard SZZFG4 iron ore price for February delivery on the Singapore Exchange (SGX) decreased 1.87% to 138.5 USD/ton, down 0.2% during the week.
Other steelmaking raw materials also weakened, with coking coal DJMcv1 and coking coal DCJcv1 on the DCE down 4.15% and 3.52%, respectively.
Benchmark steel prices on the Shanghai Futures Exchange were also lower. Rebar SRBcv1 decreased by 1.39%, hot rolled steel coil SHHCcv1 decreased by 1.71.
“It was a normal downward correction after sentiment cooled as the market absorbed news of the additional lending mechanism,” said Chu Xinli, an analyst at Shanghai-based China Futures. (PSL)”.
Data from consulting firm Mysteel showed that average daily hot metal output among the mills surveyed fell 1.4% for the 10th consecutive session this week to 2.18 million tons, also down 1.2% over the same period last year.
Furthermore, relatively high ore prices have caused some mills to be cautious for the time being, with little interest in placing orders now in anticipation of lower prices in late January and February.
According to market research firm Shanghai Metals Market (SMM), entering January 2024, when peak production at mines ends, global iron ore exports will gradually decrease again. Cargo arrivals at ports will remain high due to high shipping volumes in the initial phase. Therefore, overall supply will remain abundant in the short term.
On the demand side, when measures to limit production to protect the environment during the winter in some places in China are lifted, steel mills in the country can ramp up production again. Capacity increase may not happen quickly because it depends on market demand.
Analysts say that most steel mills will increase iron ore reserves in January 2024 before the Lunar New Year to ensure production maintenance throughout the holiday. Iron ore prices are expected to fluctuate strongly in January 2024 based on supply and demand fluctuations.
Domestic iron and steel prices remained flat
During this period, VJS Steel in the North and Pomina Steel in the South kept their steel prices unchanged compared to the most recent adjustment on December 15.
Dr. Nguyen Thi Quynh Hoa believes that steel demand can increase thanks to increased disbursement of public investment capital, however, the proportion of construction steel consumption in public investment is not much and the driving force behind steel market growth is Most will come from the recovery of the civil construction market.
"Total construction steel consumption in 2023 is estimated to decrease by about 4% before recovering strongly by 7% in 2024," Ms. Hoa predicted.
To grasp opportunities in integration, businesses need to have solutions to cope with the EU's cross-border carbon adjustment mechanism (CBAM), which has just piloted the transition period from October 1, 2023. fully implemented from 2026.
According to Ms. Hoa, demand for steel for export is also forecast to decrease because the Chinese market is open and Chinese steel products have long competed very strongly with Vietnamese steel in the international market.
Production costs of the steel industry are forecast to increase due to increased electricity prices. Electricity accounts for a high proportion of the cost of producing steel products, thus creating a major obstacle for Vietnam's steel industry.
Iron ore prices are forecast to reach 90 USD/ton and decrease to 70 USD/ton by 2024 (DISR) with the expectation of recovering export supply in Australia and recovering production in China.
Another raw material in steel production, coal, is also expected to increase in price in the context of India increasing coal imports for steel production. Coal prices on the world market may trade at 187.94 - 213.9 USD/ton in the near future.
Steel prices in the North
Hoa steel brand with CB240 steel coil line at 13,940 VND/kg; D10 CB300 rebar steel is priced at 14,240 VND/kg.
Viet Y steel brand, CB240 steel coil line stopped at 13,870 VND/kg; D10 CB300 rebar steel is priced at 14,170 VND/kg.
Viet Duc Steel, with CB240 rolled steel line at 13,640 VND/kg, D10 CB300 rebar steel bar priced at 14,340 VND/kg.
Viet Sing Steel, with CB240 steel coil at 13,650 VND/kg; D10 CB300 rebar steel is priced at 13,850 VND/kg.
VAS steel, with CB240 steel coil line at 13,600 VND/kg; Meanwhile, D10 CB300 rebar steel is priced at 13,850 VND/kg.
Steel prices in the Central region
Hoa Phat Steel, with CB240 steel coil line at 13,940 VND/kg; D10 CB300 rebar steel is priced at 14,340 VND/kg.
Viet Duc Steel, CB240 steel coil line is currently at 14,140 VND/kg; D10 CB300 rebar steel is priced at 14,750 VND/kg.
VAS steel, currently D10 CB300 rebar steel is priced at 14,260 VND/kg; CB240 steel coil line is at 14,010 VND/kg.
Pomina steel, with CB240 steel coil line at 14,890 VND/kg; D10 CB300 rebar steel is priced at 15,300 VND/kg.
Steel prices in the South
Hoa Phat Steel, D10 CB300 rebar steel is priced at 14,250 VND/kg; CB240 steel coil at 13,950 VND/kg.
VAS steel, CB240 steel coil line at 13,600 VND/kg; D10 CB300 rebar steel is priced at 13,850 VND/kg.
Pomina steel, CB240 steel coil line at 14,590 VND/kg; D10 CB300 rebar steel is priced at 14,990 VND/kg.
