Steel price today May 3: Iron ore maintains momentum...

Iron ore prices maintain their upward momentum in the short term, however, some concerns suggest that EU semi-finished steel prices may continue their downward trend in the next 2 to 3 months.

World market

At the end of the trading session on May 2, the price of iron ore futures for May delivery on the Singapore Exchange increased by 0.95 USD to 97.15 USD/ton. In the morning session on May 3, the price of ore continued to increase by 0.3 USD to 96.55 USD/ton. Meanwhile, the Chinese market was temporarily closed from May 1-5 on the occasion of International Labor Day.

In the EU, flat steel slab prices fell to $500/mt CIF in the second half of April from $520-540/mt CIF in the first half, according to Eurometal. Compared to March, prices fell by $80-100/mt.

Iron ore prices maintain their upward momentum in the short term, however, some concerns suggest that EU semi-finished steel prices may continue their downward trend in the next 2 to 3 months.

According to traders, this trend will not change in the next 2-3 months due to weak demand from rolling mills and plate manufacturers.

As a result, the restrictions on imports of finished flat steel products into the EU, imposed by the European Commission at the end of March, did not lead to the price increase in the European market that the market had expected. In addition, the previous decline in coil prices in the European region has adjusted the supply of flat steel.

Semi-finished steel prices in Japan remained stable at USD 470/mt FOB in April. This shows that the semi-finished steel market in Southeast Asia is quite stable.

Meanwhile, Brazilian slab prices rose to $510/mt FOB in late April after three weeks of stability at $490/mt FOB, reflecting the resumption of exports to the US. However, the upside potential for Brazilian semi-finished steel prices is limited as US hot-rolled coil prices have started to decline as the market exits its boom phase following the imposition of a 25% import tariff.

As previously reported, imports of semi-finished steel products into the United States in March reached 675 thousand tons, according to the US Steel Association. The total for the first quarter of this year was 2.06 million tons.

China is assessing the possibility of negotiations and Japan aims to reach a trade deal by June.

The EU is considering increasing its purchases of US goods by €50 billion ($56.46 billion) to address “the problem” in trade relations, European Trade Commissioner Maros Sevcovic said in an interview with the Financial Times, adding that the bloc was making “some progress” towards a deal.

He noted that, given the 50 billion euro trade deficit, the problem could be quickly solved by purchasing LNG and some agricultural products, such as soybeans.

At the same time, he warned that it would be “very difficult” to reach a good deal that would be acceptable to the bloc’s member states and the European Parliament. The European Union is also ready to work with the US to help offset the impact of China’s export growth.

Domestic market

Domestically, construction steel prices at some enterprises are stable. Specifically, the price of Hoa Phat 's CB240 steel is recorded at 13,550 VND/kg, and CB300 steel is 13,600 VND/kg.

Similarly, at Viet Sing Steel Enterprise, CB240 steel price is recorded at 13,450 VND/kg, D10 CB300 steel is quoted at 13,650 VND/kg.

Meanwhile, Viet Duc steel recorded D10 C300 at 13,740 VND/kg, and CB240 steel at 13,500 VND/kg.

Source: https://baodaknong.vn/gia-sat-thep-hom-nay-3-5-quang-sat-duy-tri-da-di-len-251330.html