Dalian iron ore prices fell for the third consecutive session, as steel prices fell in China on signs of slowing demand
The price of iron ore for September delivery on the Dalian Commodity Exchange on June 9 fell 0.7% to 1,149 CNY (equivalent to 179.81 USD)/ton, after falling about 4.5% to the level. lowest since June 1.
The decline in rebar inventories in China slowed down last week indicating softening demand, due to the start of the rainy season in southern provinces.
However, it is too early to worry about steel demand in China, according to the managing director of Navigate Commodities, Singapore.
The iron ore contract for July delivery in Singapore rose 3.1% to $199.85 a tonne after falling about 2% earlier.
China’s rebar inventories have fallen more than 40% from their peak in March, while hot-rolled coil inventories have fluctuated over the past five weeks, according to SteelHome.
Bar in Shanghai fell 1.8% while hot rolled coil fell 1.7%, both falling to their lowest levels since June 1 in early trading. Stainless steel fell 1.5%.
Spot iron ore prices in China fell to $203 a tonne on June 7, down about 12% from a record last month.
Domestic steel prices simultaneously decreased compared to last week.
Hoa Phat’s construction steel is chosen by many consumers. This brand, which accounts for 31.9% of the country’s market share in the first quarter of 2020, also decreased with CB240 coil at VND 17,200/kg, down 6.2% from the price of VND 18,270/kg last week. D10 CB300 steel is priced at 17,100 VND/kg compared to 17,810 VND/kg last week (down 4.6%).
In the central market, Hoa Phat construction steel brand announced a sharp decrease in the first two days of the week, CB240 steel coil was at VND 17,610/kg; Rebar D10 CB300 is priced at 17,310 VND/kg. Last week, CB240 price was stable at 18,060 VND/kg.\
With Viet Duc steel, CB240 coil is priced at 17,610 VND/kg compared to 18,420 VND/kg last week; D10 CB300 rebar is currently at VND 18,560/kg compared to VND 18,060/week ago.
Pomina steel brand, CB240 coil line is currently at VND 16,900/kg; D10 CB300 steel is currently priced at 17,360 VND/kg. Prices for both items are reduced.
Hoa Phat’s CB240 steel coil decreased by 900 VND/kg to 17,200 VND/kg compared to the highest price of the previous week; D10 CB300 rebar is priced at 17,050 VND/kg with 17,650 VND/kg last week.
Regarding Pomina steel, CB240 coil price was at 17,200 VND/kg with 17,560 VND/kg last week. D10 CB300 rebar is currently priced at 16,750 VND/kg with 17,710 VND/kg compared to the highest price last week.
Southern Steel’s CB240 coil product is priced at 17,460 VND/kg; D10 CB300 rebar maintained at 17,310 VND/kg, keeping the same price on 7/6 but decreasing compared to the price of the previous week.
Source: VITIC/Reuters
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