Steel prices today fell to 4,329 yuan / ton on the Shanghai Exchange. China’s daily crude steel output is expected to increase in the new year as the country begins to ease production cut requirements.
Steel prices continue to fall today
Steel price today delivered in May 2022 on the Shanghai Exchange fell 57 yuan to 4,329 yuan/ton at the time of the survey at 8:20 am (Vietnam time).
| Type name | Period | December 28 | Difference from previous transaction |
| Copper price | Delivered in February 2022 | 70.840 | +1.110 |
| Zinc price | Delivered in February 2022 | 24.150 | -150 |
| Nickel price | Delivered in February 2022 | 149.460 | +1.370 |
| Silver price | Delivered in July 2022 | 4.860 | +5 |
| Steel price | Delivered in May 2022 | 4.329 | -57 |
List of futures trading prices of some metals on the Shanghai Exchange (Unit: yuan/ton). Summary: Thao Vy
China’s daily crude steel production is expected to increase in the new year after retreating from the level of the first 10 days of the month, as the country relaxes the requirement to cut steel output in the 2022 decarbonization policy.
Iron ore chart at Shanghai Exchange (Source: Shfe)
According to market participants, an increase in steel production during the off-season from January to February will lead to an oversupply in the Chinese market, but further monetary and fiscal policy easing could help. partly support steel prices.
Some sources said that although China’s steel production could certainly increase in early 2022, the sluggish steel demand due to the slowdown in real estate investment and construction of new homes could make steel output worse. lower than 2021.
According to the China Iron and Steel Association (CISA), China’s crude steel output during December 11 – December 20 decreased by 1.9% compared to the first 10 days of the month. This is due to increased production cuts in northern China amid calls to tackle air quality and pollution.
Generally in the first 20 days of December, China’s steel output reached 2.42 million tons/day, up 4.9% compared to the average level of November, but down 17.7% compared to the same period last year. time last year.
Photo: Shanghai Unite Steel
Finished steel inventories at steel mills and the spot market tracked by CISA were 5.3% higher year-on-year, reaching 21.41 million tons on December 20, indicating weaker steel demand compared to the same period last year. with a decrease in output.
China’s Ministry of Industry and Information Technology (MIIT) said that industrial growth is the country’s top priority in 2022, but the ministry did not specify a request to cut steel output for the year.
“It is almost certain that 2022 will see less government intervention in steel production than 2021,” said one market participant.
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