Steel, iron ore prices in China simultaneously increased after the holiday

The price of 62% Fe ore imported at Tianjin port, China is 150.1 USD/ton, up 3.2% compared to February 7 and up 33.4% year-to-date.

The price of rebar futures contract on the Shanghai floor, China on February 8 was traded at 4,808 yuan / ton (756.3 USD / ton), up 0.6% compared to February 7 . Since the beginning of the year, the price of this metal has increased by 5.7% and this is also the highest level in the past 15 weeks.

Price movement of rebar in China. Source: Trading Economics

Steel prices rose as China said it plans to use more domestic iron ore and increase scrap steel usage. China's Ministry of Industry says more than 80% of steel production will be low-emissions by 2025.

China, the world's largest metal importer, recorded a slump in the real estate market, credit stress and repeated outbreaks of the Covid-19 epidemic. The People's Bank of China cut interest rates for the first time in nearly two years, signaling the start of a monetary easing cycle.

China tends to strengthen macro policies to stabilize the economy in the context of a downtrend in the real estate market, according to Huatai Futures. Besides, industry experts believe that steel demand in China will increase in the second quarter of this year as construction activities and investment in infrastructure will increase as China implements many stimulus measures. economy.

The price of iron ore imported into China has also increased in recent times. 62% Fe ore imported at Tianjin port, China is 150.1 USD/ton, up 3.2% compared to February 7 and up 33.4% year-to-date.

Price movements of ore 62% Fe. Source: Trading Economics

Meanwhile, the price of 63.5% Fe ore imported at the same port was $143/ton, the highest since September 2021.

China is a market where Vietnam imports a lot of iron and steel. In 2021, Vietnam imported 2.3 million tons, equivalent to 11.52 billion USD, of which iron and steel imported from China accounted for 40.3% of the total volume and accounted for 38% of the total import turnover of products. this product of the whole country with 5 million tons, worth 4.38 billion USD, increasing both volume, turnover and price compared to 2020.

NDH