Gas prices enter new uptrend; Steel extends decline on the exchange

Gas prices enter new growth cycle

In the early morning (Vietnam time) on January 11, gas prices increased by 0.10% to 3.03 USD/mmBTU for natural gas contracts for delivery in February 2024.

Cold weather forecasts for next week during the extended Martin Luther King holiday in the U.S. will have an impact on natural gas prices. Demand for the gas, which heats about half of the nation’s homes, will hit a daily record of 170.0 billion cubic feet per day (bcf/d) on Jan. 15 and 173.7 bcf/d on Jan. 16.

In addition to high gas demand, extreme cold weather can cause production to drop by freezing oil and gas wells, pipelines and other energy equipment.

In the domestic market, retail gas prices from the first day of the new year on January 1, 2024 will increase by 450 - 500 VND/kg (including value added tax). Accordingly, each gas cylinder will increase by 3,000 VND/6 kg, 6,000 VND/12 kg cylinder, 22,500 VND/45 kg cylinder and 25,000 VND/50 kg cylinder.

According to gas wholesalers, the world gas price for delivery under the contract (CP) in January 2024 increased by 10 USD/ton, to 625 USD/ton compared to December 2023, so the domestic retail gas price increased accordingly.

Thus, from August 2023 to now, retail gas prices have continuously increased, except for December 2023 when gas prices remained unchanged.

Steel extends decline on the exchange

Today, the price of steel for delivery in May 2024 on the Shanghai Futures Exchange fell 6 yuan to 3,827 yuan/ton.

On the raw material front, the May iron ore contract on China’s Dalian Commodity Exchange (DCE) closed 0.25% lower at 994 yuan ($138.82) a tonne, after falling 1.1% on Jan. 8. Other steelmaking raw materials on the DCE also fell amid weaker demand and easing supply concerns. The benchmark iron ore contract for February delivery on the Singapore Exchange (SGX) fell 0.11% to $137.85 a tonne.

On the Shanghai Futures Exchange, the price of rebar for May 2024 delivery increased by 50 yuan/ton to 4,004 yuan/ton.

Steel prices on the exchange continued to decline due to low demand for construction steel products, both from steel traders and downstream steel consumers. However, analysts expect continued support from strong purchasing power in the coming weeks to maintain production during the week-long Lunar New Year holiday, along with a relatively large price gap in the spot and futures markets.

In the last month of last year, construction steel and high-quality steel of all kinds recorded the highest level in the past 20 months.

Many experts believe that this is a good sign. In the coming time, the Government, ministries and sectors need to have more breakthrough policies for the real estate market to pull the steel market back to growth.

Domestic coffee prices exceed 70,000 VND/kg

Updated at 4:12 a.m. on January 11, domestic coffee prices continued to increase, increasing by 500 - 600 VND/kg and have exceeded 70,000 VND/kg. Currently, the average coffee price in the Central Highlands provinces is about 70,300 VND/kg, the highest purchase price in Dak Nong and Dak Lak provinces is 70,500 VND/kg.

Specifically, the coffee purchase price in Gia Lai and Kon Tum provinces is at 70,400 VND/kg; In Dak Nong province, coffee is purchased at the highest price of 70,300 VND/kg.

The price of green coffee beans (coffee beans, fresh coffee beans) in Lam Dong province in districts such as Bao Loc, Di Linh, Lam Ha is purchased at 69,800 VND/kg.

Coffee prices in Dak Lak province today are high; in Cu M'gar district, coffee is purchased at 70,400 VND/kg, and in Ea H'leo district and Buon Ho town, it is purchased at the same price of 70,500 VND/kg.

Japanese Yen exchange rate reverses and plummets

Japanese Yen exchange rates surveyed on the morning of January 11 at specific banks are as follows:

At Vietcombank, the Japanese Yen exchange rate is 163.46 VND/JPY for buying and 173.03 VND/JPY for selling, down 0.85 VND for buying and down 0.9 VND for selling. At Vietinbank, the Yen exchange rate decreased 0.78 VND for buying and selling, equivalent to 164.18 VND/JPY and 173.88 VND/JPY. At BIDV, the Japanese Yen exchange rate decreased 0.72 VND for buying and down 0.77 VND for selling, reaching 164.43 VND/JPY and 173.08 VND/JPY, respectively. At Agribank, the buying and selling rates are 165.55 VND/JPY and 170.75 VND/JPY - down 0.56 VND for buying and down 0.61 VND for selling.

At Eximbank, the buying rate decreased by 0.75 VND and the selling rate decreased by 0.83 VND, respectively, to 165.87 VND/JPY and 170.63 VND/JPY. At Sacombank, the Japanese Yen exchange rate decreased by 0.04 VND and the selling rate decreased by 1.51 VND, respectively, to 166.37 VND/JPY and 171.44 VND/JPY.

Thus, today Sacombank is the bank with the highest buying rate of Japanese Yen and Eximbank is the bank with the lowest selling rate among the banks.

Source