Kinh tế

Oversupply continues to affect steel prices in June

Over the weekend, iron ore prices in China hit a 1-week low, as downstream demand fell while investors worried about the world’s second-largest economy shrinking in the second quarter of 2022. amid the Covid-19 restrictions.

China is facing greater economic difficulties than in 2020, with several indicators starting to plummet since March 2022.

Beijing aims to bring economic activities back to normal with a variety of measures. Experts say consumption will increase when Covid-19-related restrictions are lifted. However, it will take time for the economy to fully absorb all the stimulus measures introduced by the government.

Since the profitability of steel mills is relatively low and with the expectation of controlling annual output, there is little possibility of further increase in molten iron production.

It is expected that iron prices will be mainly driven by steel product demand in the coming period, and iron ore prices will continue to fluctuate before consumption improves.

On the Dalian bourse, over the weekend, the price of iron ore for September 22nd futures fell 0.8% to 834 yuan/ton, in one session, it fell 4.1% to 806 yuan (equivalent to 119 yuan). 99 USD)/ton – the lowest since May 19, 2022. Coking coal prices fell 0.7 percent to 2,473 yuan a tonne and coking coal fell 0.2 percent to 3,256 yuan a tonne.

Meanwhile, on the Shanghai trading floor, the price of rebar for October 10/2022 futures increased by 0.2% to 4,505 yuan/ton, hot rolled coil price decreased by 0.1% to 4,632 yuan/ton. The price of stainless steel for June 2022 futures fell 0.4% to 18,530 yuan/ton.

Material prices today May 28: Oversupply continues to affect steel prices in June - Photo 1.

Material prices today May 28: Oversupply continues to affect steel prices in June.

Experts believe that rising Chinese steel production will continue to weigh on prices in June and exacerbate oversupply as domestic steel demand remains tepid as the economy is still not fully open. after the pandemic.

According to S&P Global Commodity Insights, China’s daily pig iron production from May 1 to May 20 grew for the first time since May 2021, while daily crude steel production also increased, according to S&P Global Commodity Insights. reached its highest level since June last year, according to data from the China Iron and Steel Association (CISA) released on May 26.

Rising steel production will continue to weigh on prices into June and exacerbate oversupply as domestic steel demand remains tepid as the economy is still not fully open, industry sources said. post-pandemic door.

According to CISA, daily crude iron and steel output reached 2.6 million tons and 3.1 million tons from May 1-20, respectively, up 2.3% and 2% compared to the monthly average, respectively. 4.

China’s pig iron production in the first 20 days of May was 3.9% higher than the same period last year. While crude steel production remains 1.7% lower year-on-year, it has improved from the 5.2% year-on-year decline seen in April.

As of May 20, finished steel inventories at steel mills and the spot market monitored by CISA increased to 32.06 million tons, 20.1% higher than the same period in 2021.

The sources said, the increase in steel inventories reflects the slow recovery of steel demand in both construction and manufacturing sectors due to the virus outbreak.

Domestic construction steel price is adjusted down

Domestically, domestic steel brands have adjusted their selling prices. Many construction steel enterprises continued to reduce product prices from May 27 and this is the third consecutive decrease in more than half a month.

Steel prices in the North: According to SteelOnline.vn, Hoa Phat steel brand adjusted its selling price. Specifically, CB240 steel coil decreased by 370 VND to 17,460 VND/kg; Rebar D10 CB300 reduced by 270 VND, priced at 18,010 VND/kg.

Similarly, Vietnam-Italy steel on May 27 lowered its selling price. With CB240 steel coil, 410 VND decreased to 17,570 VND/kg; rebar line D10 CB300 down to the price of 17,930 VND/kg.

Viet Duc steel brand, with CB240 coils down 490 dong, currently at 17,320 dong/kg; and rebar D10 CB300, priced at 17,980 VND/kg.

As for VAS steel with a sharp decrease in selling price, 2 of its products, including CB240 coil, decreased by 400 dong, currently at 17,170 dong/kg; D10 CB300 rebar line reduced by 410 VND, priced at 17,470 VND/kg.

Vietnam Japan Steel with 2 steel lines of the company adjusted down. Currently CB240 coil is at 17,370 VND/kg; D10 CB300 rebar is priced at 17,570 VND/kg.

Viet Sing Steel, with CB240 coil, fell to 17,510 VND/kg; D10 CB300 rebar line is currently priced at 17,710 VND/kg.

Steel prices in the Central region: Hoa Phat Steel adjusted its selling price to below the threshold of VND 18,000/kg. CB240 coil line is currently at 17,610 VND/kg; Rebar D10 CB300 reduced to 17,910 VND/kg.

Viet Duc Steel deeply reduced selling price. Specifically, with 2 products of the company, including CB240 steel coil, decreased by 500 VND, to 17,570 VND/kg; D10 CB300 rebar is priced at 17,980 VND/kg.

VAS steel, CB240 coil and D10 CB300 rebar all dropped deeply, down to 17,570 and 17,520 dong/kg, respectively.

Pomina Steel, with CB240 coil line down 400 dong, now at 18,270 dong/kg; and D10 CB300 rebar reduced by 300 dong, priced at 18,570 dong/kg.

Steel prices in the South: Hoa Phat Steel plummeted 370 VND for 2 of its products. Specifically, with CB240 coil line from 17,930 to 17,560 VND/kg; D10 CB300 rebar is priced at 17,910 VND/kg.

Pomina Steel, with its two product lines, simultaneously reduced by 400 dong. CB240 coil line is currently at 18,010 VND/kg; D10 CB300 rebar is priced at 18,520 VND/kg.

VAS steel with CB240 coil and rebar D10 CB300 adjusted, same price 17,470 VND/kg.

Tung Ho Steel, with CB240 coil line down 410 VND, priced at 17,660 VND/kg; Rebar D10 CB300 decreased by 310 VND, currently priced at 17,760 VND/kg.

Material prices today May 27: Domestic steel prices continue to decrease by 500,000 VND/ton - Photo 2.

Steel price today 28/5.

Material prices today May 28: Oversupply continues to affect steel prices in June - Photo 3.
Material prices today May 27: Domestic steel prices continue to decrease by 500,000 VND/ton - Photo 4.

Steel price today 28/5.

Material prices today May 28: Oversupply continues to affect steel prices in June - Photo 5.
Material prices today May 27: Domestic steel prices continue to decrease by 500,000 VND/ton - Photo 5.

Steel price today 28/5.

Material prices today May 27: Domestic steel prices continue to decrease by 500,000 VND/ton - Photo 6.

Steel price today 28/5.

Material prices today May 28: Oversupply continues to affect steel prices in June - Photo 8.
Material prices today May 27: Domestic steel prices continue to decrease by 500,000 VND/ton - Photo 7.

Steel price today 28/5.

Material prices today May 27: Domestic steel prices continue to decrease by 500,000 VND/ton - Photo 8.

Steel price today 28/5.

Thus, from the beginning of the year until now, construction steel price in the country underwent 10 times of adjustment, of which 7 times increased and 3 times decreased. Steel price was 1-1.5 million dong/ton lower than in early May. Of which, CB240 grade of Hoa Phat North decreased by 1.48 million dong/ton. The same type of steel from Vietnam and Italy decreased by 1.32 million VND/ton. CB240 of Southern Steel dropped 1.42 million VND/ton.

The reason for the downward price is said to be the price of steel billet and input materials in a downtrend.

Currently, the domestic steel consumption as well as the weak export channel along with the cooling of input material prices have put pressure on steel prices in domestic construction. The price of raw materials in steel production has continuously decreased since the end of March, causing the steel market to slow down.

You are reading the article Oversupply continues to affect steel prices in June
at Blogtuan.info – Source: danviet.vn – Read the original article here

Back to top button