While the world ore price tends to cool down, the price of iron ore and minerals imported to Vietnam in August still increased slightly, reaching $173/ton, the highest level in the first 8 months of the year and nearly doubled compared to the previous year. same period in 2020.
According to statistics of the General Department of Customs, imports of ores and minerals of all kinds in August reached 1.9 million tons, worth more than 335 million USD, slightly down in volume and value compared to July.
In the first eight months of the year, imports of ores and minerals reached nearly 18 million tons, worth $2.9 billion, up 60% in volume, and export turnover nearly tripled over the same period in 2020.
Import volume and value of iron ore in the past 1 year (Data: General Department of Customs, Graphic: Hoang Anh)
Import price of ore and minerals in August reached 173 USD/ton, reaching the highest level in the first 8 months of the year and nearly doubled over the same period in 2020.
In the first 8 months of the year, the import price of ore and minerals reached 157 USD/ton, up 76% over the same period last year.
Thus, iron ore imports tend to cool down for 4 consecutive months. However, iron ore prices are still high and go against the world trend.
Comparison of iron ore prices in 8 months of 2020 and 2021 (Data: General Department of Customs, Unit: USD/ton, Graphic: Hoang Anh)
According to the Vietnam Steel Association (VSA), iron ore prices on September 8 traded at $132-133 per tonne CFR Tianjin port, China, a sharp decrease of about $33 per tonne compared to the time of August 11.
This price is about 80 USD/ton lower than the highest price recorded in early May, equivalent to 210-212 USD/ton.
Also according to Mining, iron ore prices fell 7% due to a sharp drop in China’s steel production in August.
China’s National Bureau of Statistics announced in August that the country’s crude steel production reached 83 million tons, down 13% year-on-year due to the policy of controlling the steel industry to cut emissions into the environment.
Analysts at analytics firm ANZ Research say this is the lowest level since March 2020. This reduction is expected to remain until the end of the year as provinces strive to achieve their emissions targets.
ANZ forecasts that China’s steel production may decline by 11% in the second half of 2021, leading to a decrease in iron ore consumption by about 87 million tons.
“Markets are still very concerned with news of new developments in China as iron ore prices remain well above cost of production,” Westpac economist Justin Smirk told the Financial Review.
Recently, Yunnan province, which produces about 2% of China’s total crude steel, asked local manufacturers to control consumption of steel, aluminum and other materials. In addition, the leader of this province advised businesses to partially postpone the production plan from September to November and December.
The reason is that the province is targeting “blue skies”, reducing air pollution, preparing for the Beijing Winter Olympic Games in October.
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