Steel and iron ore prices on December 11: Continue to fall due to increased supply.

World iron ore prices fell for the fifth consecutive session as the Simandou project began shipping, putting significant pressure on supply. Meanwhile, the domestic steel market remained stable.

Global market developments

Steel and iron ore prices on international exchanges continued their downward trend on December 11th, primarily due to pressure from increased supply and weakening demand in the Chinese market.

At the close of trading on December 9th, the price of January 2026 rebar futures on the Shanghai Futures Exchange (SHFE) fell 0.8%, or 25 yuan, to 3,091 yuan per ton. Similarly, the price of iron ore futures on the Dalian Commodity Exchange (DCE) also fell 0.77% (6 yuan), closing at 775.5 yuan per ton.

On the Singapore exchange, iron ore futures for January 2026 delivery fell slightly by $0.27 to $101.79 per ton, marking the third consecutive day of declines and the lowest level since November.

Steel and iron ore prices continue to fall due to increased supply and weak demand.

The main cause of price pressure.

The main reason behind the drop in iron ore prices is that the Simandou project in Guinea, the world's largest iron ore mine, has begun shipping its first consignments and is preparing to enter large-scale mining operations. This event has raised expectations of a surge in supply, putting competitive pressure on traditional suppliers such as Australia and Brazil.

Furthermore, demand in China, the world's leading iron ore consumer, is projected to decline. The country's crude steel production this year could fall below 1 billion tons, its lowest level in six years. This outlook is making investors cautious, putting pressure on raw material prices.

Other steelmaking raw materials such as metallurgical coal and coke also recorded declines of 2.21% and 2.7% respectively, reflecting the overall pessimistic sentiment in the market.

The domestic steel market remains stable.

Contrary to global trends, the domestic construction steel market remains stable. Major companies such as Hoa Phat , Viet Duc, VAS, and TungHo have all maintained their selling prices to stabilize the market.

Currently, domestic steel prices range from 12,520 to 13,640 VND/kg, depending on the product type and distribution area.

• In Northern Vietnam: CB240 steel coils are priced from 13,330 to 13,640 VND/kg. D10 CB300 ribbed steel bars range from 12,730 to 13,090 VND/kg.
• In the central and southern regions: Prices also remained similarly stable.

Maintaining these prices is seen as a move to control costs and respond to the global trend of falling raw material prices, avoiding major disruptions to the domestic construction industry.

Market outlook

Analysts predict that the steel and iron ore markets will continue to face pressure in the near future due to a combination of abundant supply and weak demand. Developments in Chinese steel production and the mining rate at the Simandou mine will be key factors determining price trends in the final months of the year and the beginning of next year.

Source: https://baolamdong.vn/gia-thep-va-quang-sat-1112-tiep-tuc-giam-do-nguon-cung-tang-409538.html