Dollar prices slightly decrease; steel reverses upward; gasoline and oil prices remain stable

The US dollar fell slightly to 23,704 VND.

Yesterday's USD exchange rate developments showed that the Dollar Index (DXY), measuring the USD against 6 major currencies (EUR, JPY, GBP, CAD, SEK, CHF) stopped at 102.14 points with a decrease of 0.78% at the close of the session on June 15.

Data showed that U.S. jobless claims exceeded expectations in May, while retail sales unexpectedly rose on strong gains in motor vehicles and building materials. This could help stave off a recession in the near term and signal a pause in Fed policy in June, after two interest rate hikes by the Federal Reserve this year.

US Dollar trading price on June 16.

The surge in jobless claims has boosted confidence that the Fed will not make more rate hikes in the near term. Combined with higher-than-expected retail sales, this looks like “ingredients for a soft landing” for the U.S. economy, said Irene Tunkel, chief equity strategist at BCA Research.

As a result, the US dollar fell 0.787%, while the euro rose 1.06% to $1.0946. "Aside from the near-term outlook for interest rates, the US dollar could face a more difficult environment. The global monetary policy cycle is approaching its end," said Shaun Osborne, head of foreign exchange strategy at Scotiabank in Toronto. An escalation in the interest rate cycle would be negative for the US dollar as it would spur demand for riskier bets among investors.

Domestically, the US Dollar buys at 23,513 VND/1 USD, and sells at 23,568 VND/1 USD. The Euro buys at 25,553 VND/1 Euro, and sells at 25,673 VND/1 Euro.

Steel priceincrease 3RMB/ton on the exchange

Steel price today (June 16) for October 2023 delivery on the Shanghai Stock Exchange increased by 3 yuan to 3,741 yuan/ton.

Steel futures for January 2024 delivery rose 12 yuan to 3,661 yuan/ton.

Amid weakening domestic demand due to a sluggish real estate market, China continues to boost steel exports.

According to data from the General Administration of Customs of China (GACC), the country's steel exports in May reached 8.4 million tons, up 7.6% year-on-year, the highest level since September 2016. In the first five months of this year, steel exports increased sharply by 41% year-on-year to 36.3 million tons.

China boosts steel exports.

China’s push to boost exports to clear inventories has meant that prices have continued to fall. In May, the country’s steel export prices fell below $1,000 a tonne ($920 a tonne).

China’s export boom and lower steel prices have hurt Vietnam’s exports, with both benchmarks down 1.5% on June 14.

Domestic D10 CB300 rebar prices have decreased. The Vietnamese steel industry has continued to face pressure from low domestic demand and competitive pressure from exports in the first 5 months of the year. Therefore, since April 8, domestic steel prices have decreased for 10 consecutive sessions. With China seeking to boost exports with rapid price reductions to compete, it is forecasted that domestic steel prices will continue to decrease in the coming time.

Today's steel prices recorded the domestic market continued to adjust down prices for D10 CB300 rebar. This is the 10th consecutive price reduction since April 8.

Explaining the reason for the decrease in steel prices, businesses said that it was due to the same downward trend as the world. Moreover, the prices of input materials are on a downward trend.

According to the Vietnam Steel Association (VSA), domestic construction steel prices have continuously decreased recently due to weakened consumption demand and lower input material costs.

After the new adjustment, the steel prices recorded today of specific brands are as follows:

According to SteelOnline.vn, the Hoa Phat steel brand, with D10 CB300 rebar, decreased by 200 VND, down to 14,690 VND/kg; CB240 rolled steel stopped at 14,490 VND/kg.

Similarly, the Viet-Italian steel brand also adjusted down 200 VND for D10 CB300 rebar to 14,390 VND/kg; meanwhile, CB240 rolled steel is priced at 14,220 VND/kg.

Viet - Duc Steel, with CB240 rolled steel stable at 14,240 VND/kg; D10 CB300 ribbed steel decreased by 210 VND, down to 14,560 VND/kg.

Viet - Singapore Steel, with CB240 rolled steel currently at 14,410 VND/kg; D10 CB300 rebar steel has dropped sharply by 410 VND, currently priced at 14,360 VND/kg.

VAS steel, currently CB240 coil steel is at 14,360 VND/kg; D10 CB300 ribbed steel decreased by 200 VND, priced at 14,260 VND/kg.

Viet-Nhat Steel, with D10 CB300 rebar reduced by 210 VND, priced at 14,460 VND/kg; and CB240 rolled steel at 14,310 VND/kg.

World crude oil prices fall

World oil prices on the morning of June 16 (Vietnam time) were as follows: WTI crude oil price decreased by 0.81 USD, down to 69.25 USD/barrel, while Brent oil price decreased by 0.52 USD, down to 74.2 USD/barrel.

Oil prices fell as the dollar weakened and data showed refinery activity in top crude importer China jumped, although a weak economic backdrop capped gains.

Illustration photo.

Domestic retail prices of gasoline and oil on the morning of June 16 were applied according to the June 12 management session of the Ministry of Finance - Ministry of Industry and Trade:

Specifically, E5RON92 gasoline is not higher than VND 20,878/liter (remaining the same as the current retail price), lower than RON95-III gasoline by VND 1,137/liter; RON95-III gasoline is not higher than VND 22,015/liter (remaining the same as the current retail price); 0.05S diesel is not higher than VND 18,028/liter (an increase of VND 85/liter compared to the current retail price); kerosene is not higher than VND 17,823/liter (an increase of VND 52/liter compared to the current retail price); 180CST 3.5S fuel oil is not higher than VND 14,719/kg (a decrease of VND 164/kg compared to the current retail price).

The Ministry of Finance and the Ministry of Industry and Trade jointly set aside the BOG Fund for E5RON92 gasoline at VND228/liter (previous period VND300/liter), RON95 gasoline at VND180/liter (previous period VND300/liter); diesel oil at VND200/liter (previous period VND300/liter); kerosene at VND200/liter (previous period VND300/liter); and fuel oil at VND100/kg (previous period VND300/kg).

The Joint Ministry also decided not to spend the BOG Fund on all gasoline and oil products.