(HSV VIETNAM GROUP) – China's steel prices have increased since last week due to some stimulus policies and higher costs. Policies include stamp duty cuts, interest rate cuts and some positive policies related to real estate. Whether prices continue to rise depends on whether demand increases or not.
If China's stock prices can continue to maintain at 3,000 points, it will be attractive to foreign funds and capital, and will accelerate the initially expected economic recovery.
Whether an increase in domestic prices can lead to growth in export prices is also the focus of the steel market this week.
Meanwhile, the Baosteel mill said the Chinese government would continue to limit steel production this year in line with the country's target of net-zero growth for the industry's carbon emissions in two years.
Mr. Wu Xiaodi, General Director of Baosteel, commented that this year there is still a policy to keep steel output stable and this year's output will not exceed last year's level.
Due to increased steel output in the first 7 months of this year, China will need to reduce production by 30 to 40 million tons. Wu expects production cuts could start in October or November and that volumes will fall rapidly once the cuts begin.
Ha Diem HSV