Steel prices continue to rise “hot” on the exchange

Steel prices today increased to 4,649 yuan / ton on the Shanghai Exchange, up 42 yuan. Authorities in Shanghai (China) announced that they will lift many strict restrictions so that businesses can resume operations from tomorrow (June 1).

Steel price Rebar futures in China on May 31 was 4,645 yuan / ton (US$697 / ton), down 1.7%, after continuously increasing in the past 5 days.

In terms of spot prices, stainless steel fell in China on May 30, down 0.1% to 17,690 yuan (US$2,655) per tonne, 8% lower than at the end of March.

Cold rolled steel coil increased 0.2% to 5,396 yuan / ton ($810 / ton). Hot rolled and I-shaped coils remained the same at 4,816 yuan/ton ($722/ton) and 5,013 yuan/ton ($752/ton), respectively.

Spot iron ore prices rose 2.2% to 966 yuan per tonne ($145 per tonne), continuing gains from last week and the highest in a week.

On Monday (May 30), iron ore futures on the Dalian Exchange (DCE) and the Singapore Exchange (SGX) simultaneously rose to their highest levels since May 23.

This rally extends a rally fueled by the easing of Covid-19 restrictions in China.

Accordingly, the September 2022 iron ore contract, the most traded on the DCE, rose 3.9% to 887.50 yuan/ton (equivalent to 133.16 USD/ton).

At the close, the contract ended day trading at 878 yuan a tonne, recording a 2.8% gain.

On the SGX, the price of iron ore for delivery in June 2022 increased by 1.5% to 135 USD/ton. Earlier, at the beginning of the session, this contract hit a one-week high of 135.30 USD/ton.

Regarding the domestic market, steel price is around 17.5-18 million dong/ton after decreasing to 500,000 dong/ton from May 27th and is the 3rd consecutive decrease in more than half a month. On May 31, domestic steel brands stabilized their selling prices.

Steel price in the North: Hoa Phat steel brand, CB240 coil price at 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; rebar line D10 CB300 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 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 fell 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 price 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.

According to industry experts, the decline in the price of input materials for steel production contributed to the cooling of steel prices.

According to the steel industry report of Rong Viet Securities Joint Stock Company (VDSC), China’s reopening of the economy is a catalyst for steel prices to recover. Previously, strict social distancing orders had weakened China’s domestic steel consumption and factories had to reduce output while boosting exports.

VDSC expects domestic steel prices fell will encourage demand to return after a quiet period from the beginning of April until now. Generally from the beginning of the year until now, the domestic construction steel price has undergone 10 adjustments, of which 7 times increased and 3 times decreased. Steel price was 1-1.5 million dong/ton lower than the historical price in early April.