Steel prices have not stopped falling, but iron ore futures have rebounded thanks to stable short-term demand and improved steel margins, while expected increased steel supply has put pressure on prices.
Update world steel prices
At the end of the trading session on August 4, the price of steel rebar for August delivery on the Shanghai Stock Exchange decreased by 0.76% (24 yuan) to 3,146 yuan/ton. On the Dalian Stock Exchange, the price of iron ore for August delivery increased by 1.45% (11.5 yuan) to 805 yuan/ton. Similarly, the price of iron ore for August delivery on the Singapore-SGX Exchange increased by 1.75 USD to 101.4 USD/ton.
Iron ore futures rebounded on Wednesday, supported by solid short-term demand, falling port inventories and improving steel margins in China, the world’s biggest consumer, but expectations of increased supply in the second half of the year capped gains, Reuters reported.
Iron ore futures opened lower yesterday before recovering. The market saw strong selling from speculators while steel mills remained cautious, reflecting weak buying demand. Trading was generally moderate.
China’s average daily pig iron output remained above 2.4 million tonnes as of July 31, a level often seen as a sign of stable iron ore demand, according to data as of July 31. At the same time, the proportion of steel mills operating profitably has also improved markedly. About two-thirds of mills were profitable in the last week of July, up from 59% at the start of the month, according to data from consultancy Mysteel.
Iron ore inventories at ports fell 0.6% week-on-week to 130.3 million tonnes as of August 1, the lowest since February 2024, according to Steelhome data. This further reinforced the positive sentiment in the market.
However, the upside is still limited by expectations of increased supply in the second half of the year. According to brokerage First Futures, as miners have kept their full-year production targets unchanged, output is likely to accelerate in the coming period to make up for the first-half decline, which was affected by cyclones in Australia.
Data from SMM shows that last week, global iron ore shipments totaled 33.5 million tonnes, up 870,000 tonnes from the previous week. However, due to the impact of storms in China, iron ore arrivals in the country continued to decline by 1.9 million tonnes, or 7.85%, with the decline mainly in crude ore and pellets.
While there are rumors of production restrictions, these are still at the level of expectations. If these measures are implemented by the end of August, the supply-demand balance in the market could change, putting downward pressure on iron ore prices.
On the other hand, steel market sentiment was positively supported by Shagang Iron and Steel Group, one of China’s largest private steelmakers, continuing to raise the selling price of long steel products by 200 yuan/ton (about 27.7 USD/ton) for the period from August 1 to 10. This is the third consecutive increase in Shagang’s three 10-day pricing cycles. Currently, the price of HRB400 rebar with a diameter of 16-20 mm has reached 3,550 yuan/ton.
According to Mysteel Global, Shagang's price hike reflects the general upward trend of coil products and improved market sentiment thanks to supportive policy signals from Beijing and more stable input material costs.
Globally, the rebar market recorded mixed trends in July. Prices in China increased sharply on expectations of stimulus measures, while prices in the US were stable, while Europe and Turkey continued to be weak due to low demand, seasonal factors and geopolitical tensions. In Shanghai alone, rebar prices rose to $460/ton at the end of the month thanks to a series of support signals from the government and a new hydropower project on the Yarlung Tsangpo River. Rising raw material prices also prompted mills to adjust their selling prices upward.
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-5-8-chua-dut-da-giam-386411.html
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