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Iron ore prices are increasing rapidly despite weakening steel demand from China's real estate sector as the country's mills maintain output amid the government's failure to impose production limits and replenish raw materials. Reserves - are at a low level.

Iron ore futures rose more than 2% on Friday, supported by rising steel mill output in China, although concerns about the property sector and lingering steel demand continued to weigh on sentiment.

The low inventory adjustment since the end of last year has worked, helping coal and ore prices put into steel production closely reflect and take advantage of market declines, especially for coal prices, thanks to That lowers steel production costs significantly compared to previous periods.

Hoa Phat's profit continued to decline sharply compared to the same period last year, but still 3.78 times higher than in the first quarter of 2023 and significantly improved compared to the last two loss quarters of 2022.

Construction steel prices experienced 14 declines, even during the peak construction season.

There is an ongoing paradox when consumption and exports of domestic steel enterprises decrease, while the amount of steel imported into Vietnam is still high, enjoys 0% tax and is not subject to any defensive measures. any trade.

The Vietnam Trade Office in Belgium said that along with the carbon balance mechanism (CBAM), the EU's new safeguard measures will increase barriers for steel exports to this region.

Speculation since late May about China's rollout of additional measures to revive its struggling real estate sector and boost domestic demand has lifted iron ore prices by around 10% in June.

Nippon Steel Vice President Takahiro Mori said the steel demand outlook is likely to remain weak at least this year or this fiscal year (through March 31, 2024).

Chinese steel mills are likely to extend output cuts in May and June to avoid a drop in profits as low domestic and foreign steel demand leads to lower prices.

Although disbursement of public investment is forecasted to accelerate in the coming quarters, there is still another minus point that prevents the steel industry from prospering again this year.