(HSV VIETNAM GROUP) – In the steel futures market, hot rolled coil contracts increased by 1.93% last week, while rebar increased by 1.65%. Raw materials also increased in the futures market, with coke contracts up 5.81% and iron ore up 3.8%.
Thus, in the past week, steel futures prices continued to increase and the increase has expanded for two consecutive weeks.
In terms of the spot steel market, on the supply side, due to the impact of narrowing profits, the release of steel mill capacity has turned from strong to weak, molten iron output has decreased and product output has also decreased.
On the demand side, due to the impact of the news of production restrictions in Shanxi, the futures market and spot market have signaled rapid market growth, and speculative demand in the market has accelerated, but the off-season effect still affects final demand.
On the cost side, due to a slight increase in iron ore prices, scrap steel prices have stabilized and increased, coke prices have remained stable, so production cost support remains solid. Therefore, under the influence of profound changes in the international context, the sustained growth of the Chinese economy, the release of supply from strong to weak, the rapid release of speculative demand and the resilience of cost support, the domestic steel market may fluctuate upward this week.
Ha Diem HSV