[SMM Steel] Vietnam Steel Mills Further Cut HRC Prices Amid Weak Demand

Today, the iron ore market showed a slightly weaker trend on the futures side. The DCE main contract I2609 closed at 713.5 yuan/ton, down 0.35% from the previous trading session. Spot prices at Qingdao Port declined by an average of about 0–2 yuan/ton from the previous day.

Last week, the mine-mouth price of 64% grade alkaline powder on dry basis tax-included acceptance reported by Shandong miners was 788 yuan, down 14 yuan; steel mills made corresponding reductions; miners mostly maintained normal production, steel mills were quite active in purchasing, most miners had no inventory, and shipments from small plants and traders also improved. Looking at this week, ample supply of imported ore constrained ore prices; in the Linyi market, some miners signed weekly contracts at the beginning of the week, and traders were active in purchasing.

[Flat Products] Today some HRC and other flat-product export prices were steady day on day, with HRC transaction prices at 482-485 USD/tonne. Traders reported that trading and enquiries were fairly muted today, with no clear pick-up in volume. [Billet] Today billet export FOB prices were steady to soft, with Jiangyin port offers at 450-455 USD/tonne. According to feedback, billet export enquiries increased slightly today, but competition is fierce and buyers are pressing their target prices down hard, making deals difficult to conclude. [Rebar] Today rebar export offers at Tianjin port were steady, with overall transaction prices at 474-480 USD/tonne. According to exporters, enquiries from overseas traders for rebar, wire rod and coil improved slightly today, but the market's acceptance of higher prices is low and there is a strong inclination to bargain down, leaving trading weak.