Construction iron and steel prices on the Shanghai floor continued to fall to their lowest level in more than a month

Construction iron and steel prices today on the Shanghai Exchange

Steel price for delivery in September 2024 on the Shanghai Exchange decreased by 61 yuan to 3,411 yuan/ton at the time of the survey at 9:45 a.m. on May 16 (Vietnam time).

Source: Trading Economics.

On Wednesday (June 15), iron ore prices continued to fall for a second consecutive session, dragged down by expectations of a seasonal drop in demand in top consumer China and a US tariff increase on a number of Chinese products, according to Reuters.

The September DCIOcv1 iron ore contract on China's Dalian Commodity Exchange (DCE) closed 1.55% lower at 858 yuan/ton (equivalent to $118.78/ton). ).

The standard SZZFM4 iron ore contract for June delivery on the Singapore Exchange (SGX) decreased 1.13% at 113.85 USD/ton, the lowest level since April 24.

Analysts at Shengda Futures said the decline was partly due to a hit to macro sentiment after seeing the use of the latest bond issuance not directly linked to the non-ferrous metals market.

Both iron ore and steel recorded gains on Monday (May 13) after market sentiment was boosted by China's Ministry of Finance announcing plans to issue 1 trillion yuan of government bonds. especially long term.

Predictions of lower seasonal demand are also weighing on prices of the key brewing ingredient.

“Hot metal production could hit a ceiling in the next 1 to 2 weeks, curbing traders' interest in (iron ore) stocks,” analysts at Galaxy Futures said in a report. ), high ore reserves at the port are still a drag.

Meanwhile, US President Joe Biden on Tuesday (May 14) revealed sharp tax increases on a series of Chinese imports, with tariffs on some steel and aluminum products increasing by more than triple to 25% by 2024.

Other steelmaking materials on the DCE fell further, with coking coal DJMcv1 and coking coal DCJcv1 down 1.25% and 1.26%, respectively.

Benchmark steel prices on the Shanghai Futures Exchange were lower. Specifically, rebar SRBcv1 decreased by 0.77%, hot rolled steel coil SHHCcv1 decreased by 0.4%, steel bar SWRCcv1 decreased by 0.67% and stainless steel SHSScv1 decreased by 0.88%.

“Steel demand showed signs of weakening in May and destruction of steel products also slowed,” said analysts at Everbright Futures.

Vietnambiz