Steel price today January 5, 2024: Reduced on the trading floor, the domestic market is stable

Steel prices today January 5, 2024: In the domestic market continues to be stable. The Vietnam Steel Association forecasts that steel consumption in 2024 will recover by 7% from a low base level.

Steel price today January 5, 2024: Steel price delivered in May 2024 on the Shanghai Exchange decreased by 35 yuan, recording 3,910 yuan/ton.

On Wednesday (Jan 3), iron ore futures rose for a second straight session, buoyed by expectations of additional fiscal stimulus in top consumer China and bets on industry growth.

May iron ore futures contracts on China's Dalian Commodity Exchange (DCE) closed 2.8% higher at 1,017.5 yuan/ton ($142.50/ton). .

Benchmark steel prices on the Shanghai Futures Exchange mostly increased. Accordingly, reinforcement contract SRBcv1 increased by 0.5%, hot rolled steel coil SHHCcv1 increased by 0.6% and stainless steel SHSScv1 increased by 1.4%. Meanwhile, steel bar SWRCv1 remains unchanged.

Other steelmaking raw materials on the DCE include DJMcv1 coking coal and DCJcv1 coking coal, up 3.1% and 2.3%, respectively.

In a report, the Organization for Economic Cooperation and Development (OECD) said the total capacity addition in the next three years is 150 million tons.

 

The Vietnam Steel Association forecasts that steel consumption in 2024 will recover by 7% from a low base level.

According to Citi analysts, new capacity additions are expected to be dominated by India and ASEAN, reflecting a focus on emerging markets.

On the Singapore Exchange (SGX), the benchmark SZZFG4 iron ore price for February delivery increased 0.6% to 141.76 USD/ton.

Steel consumption is forecast to recover by 7% in 2024

The steel industry will experience many changes in 2023, but entering 2024 will be more prosperous.

Since the 19th price reduction in September 2023, domestic steel prices have had a period of more than 2 months of no fluctuation; By the end of November, steel prices began to reverse and increase four times in a row due to increased input material prices. Pulling steel prices from a common level of more than 13 million VND/ton to a common level of 14.7 million VND/ton.

However, the general level of steel prices at this time is only equal to July 2023 and equivalent to August 2022, still in the lowest price range in the last 3 years.

By the end of 2023, steel prices will have a total of 29 official upward adjustments, with 19 decreases and 10 increases. This shows that the downward trend in prices is the main trend and an average decrease of 9.6-10.4% compared to 2022.

Although steel prices are in a low price range, analysts say that steel prices tend to gradually warm up as at the end of the year and the beginning of the new year, steel businesses continuously increase selling prices and consumption output also improves. clearly good.

According to the Vietnam Steel Association (VSA), construction steel consumption in November 2023 increased compared to previous months and reached the highest level in the past 20 months, reaching 1.1 million tons, an increase of 29% compared to the previous month and increase by 28% over the same period in 2022. Of which, construction steel exports reached 145,328 tons, up 49% compared to November 2022.

VSA representative said that the domestic economy has shown signs of improvement in recent months, but for the whole year 2023, steel consumption will decrease by 8.6% compared to 2022 to 20.3 million tons.

In 2024, steel production and consumption can reach 29 million tons and 21.67 million tons, up 6.7% and 7.4% respectively compared to 2023.

 

Source: Congthuong.vn