Steel prices continue to decline today. Steel prices today delivered in January 2022 on the Shanghai Exchange fell 44 yuan to 5,365 yuan / ton at the time of the survey at 8:50 am (Vietnam time).
| Type name | Period | October 21 | Difference from previous transaction |
| Copper price |
Delivery in December 2021 |
74.460 | +960 |
| Zinc price |
Delivery in December 2021 |
25.930 | +110 |
| Nickel price |
Delivered in November 2021 |
158.640 | +8.990 |
| Silver price |
Delivery in December 2021 |
5.068 | +66 |
| Steel price |
Delivered in January 2022 |
5.365 | -44 |
Futures price list of some metals on the Shanghai Exchange (Unit: yuan/ton). Summary: Thao Vy
Downside risks to iron ore are growing amid a slump in China’s steel output and construction numbers, Reuters reported.
Iron ore chart at Shanghai exchange (Source: Shfe)
Spot prices for benchmark 62% Fe iron ore for delivery to northern China ended the session at $124.10 a tonne on Monday, according to the Argus Commodity Price Reporting agency.
Previously, on September 20, the price of this item was recorded at USD 100.45/ton.
Since plummeting from a record high of $235.55 a tonne in May, the steelmaking raw material has been trading between $100 a tonne and $137 a tonne over the past two months.
This is a price more in line with a balanced market, where demand from China, which buys about 70% of global iron ore, remains stable and supplies from leading exporters such as Australia, Brazil and South Africa is quite potential.
However, there are growing signs that the comfortable balance of the past two months is under threat due to lower Chinese demand while higher supply.
Photo: London Metal Exchange
China’s daily steel production in September fell to the lowest level since December 2018, with a total of 73.75 million tons produced in the month, down 21.2% year-on-year and low. 8.6% higher than August level.
The reason for the decline in steel output is attributed to production restrictions as Beijing aims to cut pollution and energy use and ensure annual steel output does not exceed a record 1.065 billion tons. of last year.
If that target is achieved, steel output in the coming months will also be limited as the first nine months of 2021 increased 2% year-on-year to 805.89 million tons.
From January to September, China’s daily output averaged 2.95 million tons. To keep 2021 steel production from exceeding last year’s level, daily output in the last three months of the year could be below 2.82 million tonnes.
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