Iron ore prices maintain upward trend.

Iron ore prices are maintaining an upward trend in the short term; however, some are concerned that semi-finished steel prices in the EU could continue their downward trend over the next two to three months.

World market

At the close of trading on May 2nd, the May iron ore futures price on the Singapore Exchange rose $0.95 to $97.15 per ton. On the morning of May 3rd, the price continued to increase by $0.30 to $96.55 per ton. Meanwhile, the Chinese market was closed from May 1st to 5th for International Labor Day.

In the EU, flat steel (slab) prices fell to $500/tonne CIF in the second half of April, compared to $520-540/tonne CIF in the first half of the month, according to Eurometal. Compared to March, prices decreased by $80-100/tonne.

Iron ore prices are maintaining an upward trend in the short term; however, some are concerned that semi-finished steel prices in the EU could continue their downward trend over the next two to three months.

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

Therefore, the import restrictions on 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 as expected. In addition, the previous downward trend in coil steel prices in the European region had already adjusted the supply of flat steel.

Semi-finished steel prices in Japan remained stable at $470/ton FOB in April. This indicates a relatively stable semi-finished steel market in Southeast Asia.

Meanwhile, Brazilian slab prices rose to $510/tonne FOB at the end of April after three weeks of stability at $490/tonne FOB, reflecting the restart of exports to the US. However, the potential for further price increases for Brazilian semi-finished steel is limited as hot-rolled coil prices in the US have begun to decline as the market ends its boom period following the imposition of a 25% import tariff.

As previously reported, imports of semi-finished steel products into the U.S. in March reached 675,000 tons, according to the U.S. 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 agreement by June.

The EU is currently considering increasing its purchases of US goods by 50 billion euros (56.46 billion USD) to resolve the “problem” in its trade relationship. European Trade Commissioner Maros Sevcovic stated this in an interview with the Financial Times. He added that the bloc is making “some progress” towards an agreement.

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

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

Domestic market

Domestically, construction steel prices at some businesses remain stable. Specifically, Hoa Phat 's CB240 steel is priced at 13,550 VND/kg, and CB300 steel at 13,600 VND/kg.

Similarly, at Viet Sing Steel Company, the price of CB240 steel was recorded at 13,450 VND/kg, and D10 CB300 steel was quoted at 13,650 VND/kg.

Meanwhile, Viet Duc Steel recorded D10 C300 at 13,740 VND/kg, and CB240 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