Steel price on May 21: Slight decrease due to weak demand

International steel price on May 21

On the morning of May 21, the price of steel bars on the Shanghai Stock Exchange decreased slightly by 0.16%, trading at around 3,088 yuan/ton. This development reflects the cautious sentiment of the market in the face of fluctuations in supply, demand and weather in China.

Steel and iron ore prices moved in opposite directions this week. In Shanghai, rebar and coil contracts were slightly adjusted. In contrast, iron ore prices in Dalian were almost flat, while those in Singapore rose only slightly. The main factors were the recovery of iron ore mining activities in China and increased supply from Australia and Brazil, which have contributed to a more abundant global supply.

However, demand is showing signs of weakening. Production of hot metal, an indicator of steelmaking activity, fell slightly from the previous month. At the same time, prices of raw materials such as coking coal and metallurgical coal also cooled, putting further pressure on finished goods prices.

In particular, extreme weather is directly affecting the construction sector – the largest consumer of steel. Northern China is facing widespread heat, while the south is in the rainy season, disrupting construction progress and temporarily reducing steel demand.

In this context, steel mills still maintain stable capacity thanks to electric arc furnace systems. However, weak demand forces trading enterprises to mainly monitor the market instead of increasing transactions.

Regarding the long-term outlook, Rio Tinto representative said that iron ore demand in China will stabilize this year as the economy gradually recovers. At the same time, Nippon Steel is investing heavily in the US market through US Steel, showing long-term confidence in the sustainable development of the global steel industry.

Domestic steel price on May 21

On the morning of May 21, the domestic steel market recorded a slight increase in some regions and brands. Retail prices of popular steel types such as CB240 and D10 CB300 fluctuated between 13,350 - 14,190 VND/kg depending on the region and supplier.

In the North, steel prices of major brands such as Hoa Phat , Viet Duc, Viet Sing and Viet Y remained stable, while VAS adjusted the price up by 360 - 410 VND/kg for both products. The common price of CB240 rolled steel ranges from 13,600 to 13,890 VND/kg, while D10 CB300 is commonly from 13,350 to 13,740 VND/kg.

In the Central region, the market recorded the highest price of CB240 at 14,050 VND/kg (Viet Duc steel), while the price of D10 CB300 steel was commonly around 14,000 VND/kg. Hoa Phat and VAS steel remained stable at over 13,700 VND/kg.

In the South, some brands adjusted their prices up sharply. TungHo Steel recorded the highest increase with CB240 reaching VND14,040/kg (up VND640/kg) and D10 CB300 reaching VND14,190/kg (up VND440/kg). VAS in this region also increased by about VND360/kg for both product lines. Hoa Phat alone adjusted down VND250/kg for D10 CB300 ribbed steel bars.

The slight price increase shows that the domestic steel market is responding to supply-demand factors and raw material costs, although consumption is still facing difficulties due to adverse weather and slowing construction activities in many localities.

Source: https://baoquangnam.vn/gia-thep-ngay-21-5-giam-nhe-do-nhu-cau-yeu-3155204.html