PBOC to Conduct Overnight Reverse Repos Aug 14-19, Daily Volume Up to 600B Yuan

[China Steel Market] On August 12 China's steel export prices were mixed between gains and stability. Most flat-product export prices held flat day on day with some edging up 1 USD/tonne, and HRC transactions were at 482-485 USD/tonne; the market was relatively quiet overall, some low-priced informal offers did trade, and there is currently some port congestion at Bayuquan. Billet export FOB prices rose 1 USD/tonne, with Jiangyin port offers at 450-455 USD/tonne; offers fluctuated little and were mainly referenced to the rebar futures basis, while overseas buyers showed little urgency and were in no hurry to place orders. Rebar export offers at Tianjin port were steady with transactions at 472-477 USD/tonne; overseas enquiries were unremarkable and some South China exporters offered at 505 USD/tonne, where deals were difficult.

[Vietnam] Vietnam’s domestic steel market remained relatively stable, with construction steel prices holding at around 532 USD/tonne amid limited exchange-rate fluctuations. HRC prices stood at around 515–522 USD/tonne CFR Ho Chi Minh City, with prices remaining under pressure from subdued downstream demand and cautious buying sentiment. As weaker exports and increasing trade remedies limit overseas sales, the domestic market remains a core revenue driver, supported by expanding public investment and urbanisation. With the government holding more discussions and consultations on trade-remedy measures, Vietnam’s domestic steel market is expected to receive greater protection from low-priced imports. Measures under consideration include tighter quality requirements to ensure imported steel complies with Vietnamese standards before entering the market, which could help improve the competitiveness of domestic producers.

Today, the iron ore futures moved steadily today. The most-traded DCE I2609 contract closed at 720.5 yuan/mt, up 0.14% from the previous session. Spot prices at Qingdao Port fell by 0–2 yuan/mt from the previous trading day. Traders mostly priced based on market conditions, while steel mills mainly procured on a rigid demand basis, leaving total spot volumes relatively low so far.