Steel and iron ore prices continued to fall as China's manufacturing activity contracted for a fourth consecutive month in July.
World steel prices
At the end of the trading session on July 31, the price of steel rebar for August delivery on the Shanghai Stock Exchange decreased by 2.7% (89 yuan) to 3,206 yuan/ton. On the Dalian Stock Exchange, the price of iron ore for August delivery decreased by 1.5% (12 yuan) to 788.5 yuan/ton. Similarly, the price of iron ore for August delivery on the Singapore-SGX Exchange decreased by 1.99 USD to 99.41 USD/ton.
Steel and iron ore futures fell for a second straight session, hitting their lowest in two weeks as weaker-than-expected Chinese manufacturing activity raised concerns about demand, Reuters reported.
China's manufacturing activity contracted for the fourth consecutive month in July, an official survey showed on July 31. The country's manufacturing Purchasing Managers' Index (PMI) fell to 49.3 in July from 49.7 in June, according to data released by the National Bureau of Statistics (NBS) on Thursday. The reading showed a slowdown in exports, partly due to concerns over higher tariffs from the United States, while domestic demand remained sluggish.
Iron ore prices have been falling since July 30, after expectations of economic stimulus measures from Beijing at the July Politburo meeting, which is intended to set the direction for the Chinese economy for the rest of the year, were dashed.
According to analysts at ANZ, although the announcement after the meeting mentioned more proactive fiscal policy and moderately loose monetary policy, it did not provide specific details on large-scale stimulus packages, disappointing investors.
Other steelmaking raw materials also fell. Coking coal futures hit their limit, falling 8%, while coke fell 4.9%.
Steel indexes on the Shanghai Futures Exchange also fell sharply. The most-traded rebar futures contract fell 4.19%, hot-rolled coil fell 3.56%, wire rod fell 4.46% and stainless steel fell 1.04%.
Meanwhile, South Africa's ArcelorMittal said on July 31 that it is sticking to plans to close its loss-making long steel business in September, after talks with the government failed to produce a viable solution.
The steelmaker also posted a first-half loss of 1.014 billion rand ($56.4 million), narrowing slightly from a loss of 1.1 billion rand in the same period last year, amid persistently low sales and prices.
ArcelorMittal South Africa's revenue fell 17% to 17 billion rand, while sales volumes fell 11% to 1.05 million tonnes due to weak demand from South Africa's main steel-consuming industries.
The company has twice postponed the closure of its long steel mills in Newcastle and near Johannesburg, which were first announced for November 2023, to buy time for negotiations with the government to save about 3,500 direct jobs.
Domestic steel prices
Steel prices in the North: According to SteelOnline.vn, Hoa Phat steel brand, with CB240 rolled steel line at 13,650 VND/kg; D10 CB300 ribbed steel bar is priced at 13,790 VND/kg.
Viet Y Steel brand, CB240 rolled steel line is priced at 13,890 VND/kg; D10 CB300 ribbed steel bar is priced at 13,990 VND/kg.
Viet Duc Steel, with CB240 coil steel line at 13,550 VND/kg, D10 CB300 ribbed steel bar is priced at 13,550 VND/kg.
Viet Sing Steel, with CB240 coil steel, is priced at VND13,690/kg; D10 CB300 ribbed steel is priced at VND13,580/kg.
VAS steel, with CB240 coil steel line at 13,740 VND/kg; D10 CB300 ribbed steel bar is priced at 13,740 VND/kg.
Steel prices in the Central region: Hoa Phat Steel, with CB240 coil steel line, is at 13,530 VND/kg; D10 CB300 ribbed steel bar is priced at 13,530 VND/kg.
Viet Duc Steel, currently CB240 rolled steel is at 14,050 VND/kg; D10 CB300 ribbed steel is priced at 14,000 VND/kg.
VAS steel, CB240 coil steel line is at 13,740 VND/kg; D10 CB300 ribbed steel bar is priced at 13,790 VND/kg.
Steel prices in the South: Hoa Phat Steel, CB240 rolled steel, at 13,790 VND/kg; D10 CB300 ribbed steel is priced at 13,740 VND/kg.
VAS steel, CB240 coil steel line is at 13,740 VND/kg; D10 CB300 ribbed steel bar is priced at 13,840 VND/kg.
Source: https://baolamdong.vn/gia-thep-hom-nay-1-8-giam-do-hoat-dong-san-xuat-cua-trung-quoc-suy-yeu-384616.html
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