Iron ore prices fall as demand recovery slows

Steel prices on the exchange

Steel price today March 6, 2024: Steel price for May 2024 delivery on the Shanghai Stock Exchange decreased by 31 yuan to 3,670 yuan/ton.

Steel price today March 6, 2024: Today's steel price on the Shanghai Stock Exchange decreased by 31 yuan/ton.

Iron ore futures on the Dalian Commodity Exchange (DCE) continued to fall on Monday (March 4), as a slow recovery in short-term demand and growing doubts over the medium- to long-term outlook for the key steelmaking raw material in top consumer China, Reuters reported.

The May iron ore futures contract on China’s Dalian Commodity Exchange closed 0.11% lower at 890 yuan ($123.63) a tonne, after hitting an intraday low of 860.5 yuan.

However, the benchmark SZZFJ4 iron ore price for April delivery on the Singapore Exchange (SGX) was 2.08% higher at $115.6/mt, partly due to a weaker US dollar amid lower Treasury yields.

Other steelmaking raw materials on the DCE also weakened, with coking coal DJMcv1 and coke DCJcv1 down 1.02% and 1.4%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were generally lower. Specifically, rebar SRBcv1 fell 0.69%, hot-rolled coil SHHCcv1 fell 0.56%, wire rod SWRcv1 fell 0.17%, and stainless steel SHHScv1 fell 1.24%.

Ore demand remains under pressure amid lower-than-expected hot metal output and I do not see any strong factors driving a price recovery at the moment, analysts at First Futures said.

Steel exports flourished from the beginning of the year

The General Statistics Office reported that in the first two months of this year, iron and steel exports reached 1.5 billion USD. Although in February alone, iron and steel exports fell to the lowest level in the past three months, estimated at 950 thousand tons, worth 678 million USD, down 18.1% in volume and 17.6% in value compared to the previous month. However, compared to the same period last year, exports of this item increased by 19.3% in volume and 12.6% in value.

According to the General Department of Customs, Vietnam's total steel export volume from the beginning of the year to mid-February reached 1.54 million tons, with a turnover of nearly 1.1 billion USD. Thus, compared to the same period in 2023, the volume of exported steel increased by 65%, while the turnover increased by 66.2%.

The average export steel price in February 2024 reached 713 USD/ton, up 0.6% over the previous month, but down 5.6% over the same period in 2023. In the first 2 months of 2024, the average export price reached 711 USD/ton, down 1.7% over the same period in 2023.

Construction steel is expected to become a bright spot for the steel industry's recovery in the context that two industries that account for a large proportion of the usage structure, civil construction (accounting for 66% of construction steel demand) and public investment (accounting for 14%), are recording positive recovery signals since the end of 2023. Consumption output in the last two months of the year increased by 30% compared to the average of previous months.

Survey at SteelOnline.vn on March 6, 2024, specifically steel prices in 3 regions are as follows:

Steel prices in the North

Today's Hoa Phat steel price for CB240 coil steel is at 14,340 VND/kg; D10 CB300 ribbed steel is stable at 14,530 VND/kg.

Viet Y steel price, with CB240 coil steel line at 14,340 VND/kg; D10 CB300 ribbed steel bar at 14,640 VND/kg.

Viet Duc steel price for CB240 coil steel is at 14,240 VND/kg, D10 CB300 ribbed steel is stable at 14,640 VND/kg.

The price of Viet Nhat Steel (VJS), with CB240 steel line stable at 14,210 VND/kg, with D10 CB300 steel line maintained at 14,310 VND/kg.

The price of Viet My Steel (VAS), with CB240 coil steel line at 14,110 VND/kg, with D10 CB300 ribbed steel line is stable at 14,210 VND/kg.

Steel prices in the Central region

Hoa Phat steel price, with CB240 coil steel line at 14,340 VND/kg; D10 CB300 ribbed steel bar at 14,490 VND/kg.

Viet Duc steel price, with CB240 coil steel line at 14,750 VND/kg; D10 CB300 ribbed steel bar at 14,850 VND/kg.

Vietnam-America Steel (VAS) price, with CB240 coil steel at 14,410 VND/kg; D10 CB300 ribbed steel at 14,260 VND/kg.

Pomina steel price, with CB240 coil steel stable at 14,890 VND/kg; D10 CB300 rebar steel at 15,300 VND/kg.

Steel prices in the South

Hoa Phat steel price, with CB240 coil steel line at 14,340 VND/kg; D10 CB300 ribbed steel bar at 14,530 VND/kg.

Pomina steel price with CB240 coil steel line is stable at 14,790 VND/kg; D10 CB300 rebar steel is at 15,300 VND/kg.

Viet My Steel (VAS), with CB240 coil steel at 14,160 VND/kg; D10 CB300 ribbed steel at 14,260 VND/kg.

Tung Ho Steel, with CB240 coil steel line at 14,260 VND/kg, with D10 CB300 ribbed steel line at 14,410 VND/kg.

Information is for reference only, actual prices will vary by location!

Source: https://congthuong.vn/gia-thep-hom-nay-ngay-632024-gia-quang-sat-giam-do-nhu-cau-phuc-hoi-cham-306995.html