[SMM Survey] Robust Demand for Domestic Iron Ore Concentrates, Production Rises Slightly

Iron ore futures traded steady today. The DCE most-active contract I2701 settled at RMB 707.5/mt, up 0.21% from the previous trading day. Spot prices at Qingdao Port rose by RMB 1-4/mt. Traders largely followed the market, while mills purchased on an as-needed basis, leaving overall spot transaction volumes moderate.

[Vietnam] Vietnam’s steel market remained relatively stable on August 21, with domestic construction steel prices ranging from USD 526–576/t, equivalent to around 531 USD/tonne EXW, while HRC prices stood at approximately 515–522 USD/tonne CFR Ho Chi Minh City. Despite higher input costs, particularly for coking coal, steel and iron ore prices continue to face pressure from weak downstream demand. The prolonged downturn in China’s property sector, a major source of global steel consumption, continues to weigh on international demand and profit margins, prompting some mills to reduce production to limit losses. The weak demand outlook is expected to remain a key barrier to a sustained recovery in steel prices in the near term.