Iron ore prices fall sharply, domestic steel market remains flat

Steel prices on the exchange

Steel prices today February 25, 2024: In the raw material market, iron ore prices increased slightly again due to concerns about the possibility of supply disruptions in Brazil. However, overall last week, iron ore prices still fell sharply as the market worried about low demand in China.

Steel price today February 25, 2024: Iron ore price dropped sharply last week. Steel price today in the domestic market continued to move sideways. (Illustration photo)

Specifically, the price of iron ore for delivery in May 2024 on the Dalian Commodity Exchange (DCE, China) increased by 0.45% to NTD 899/ton (USD 124.91/ton). Overall, the price of iron ore decreased by 6.5% during the week.

Similarly, on the Singapore Commodity Exchange (SGX), the price of iron ore for delivery in March 2024 increased slightly by 0.23% to 119.95 USD/ton. Overall, it still decreased by 5.8% during the week.

According to Shanghai Metals Market, Q1 is the rainy season in the Western Hemisphere, affecting both Australia and Brazil, so exports are expected to remain low in Q1.

Meanwhile, Chinese steel mill inventories have been used up during the holiday season and will need to be replenished in the coming days. Shanghai Metals Market also assessed that Chinese steel mills are under less pressure on finished product inventories and still have the ability to increase production capacity when demand recovers.

At the same time, the recent three consecutive declines in coking coal prices, and the possibility of a fourth, are helping steel mills improve their profit margins. As a result, steel mills can increase their iron ore purchases again in the coming time, helping to support ore prices.

Therefore, Shanghai Metals Market believes that iron ore prices are unlikely to continue to decline sharply in the short term; in the medium and long term, iron ore prices will be influenced by the recovery of steel demand in the downstream sector and the economic stimulus policies of the Chinese Government.

Domestic steel prices remain unchanged

It is expected that in 2024, steel consumption will increase by about 6.4%, export output will increase to nearly 13 million tons. World steel demand is forecast to recover strongly in 2024, increasing by 1.9%, reaching 1.8 billion tons in 2024, so Vietnam's steel production will have many opportunities, expected to increase by about 10% in 2024. Finished steel production in 2024 and 2025 is estimated to reach about 28 million - 30 million tons, domestic steel consumption demand is about 22 million - 23 million tons.

2024 is considered an important pivotal year for the steel industry, with expectations that steel prices will continue to recover in the coming time. In particular, the Land Law (amended) recently passed by the 15th National Assembly is expected to have positive impacts on the real estate market, creating an opportunity for the steel industry to boost growth.

Therefore, in the coming time, businesses need to focus on a number of important solutions such as strengthening research and closely monitoring market demand developments to have timely and proactive preparation plans in 2024.

Focus on improving capacity, financial resources, improving production methods, applying new science and technology to green production; transparency in management, accounting system according to international standards and applying trade defense measures in the current context.

Despite many challenges, positive signals in the first months of the year have opened up a promising picture for the steel industry in 2024.

Surveyed at SteelOnline.vn on February 25, 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-2522024-gia-quang-sat-giam-manh-thi-truong-thep-trong-nuoc-di-ngang-305144.html