Steel prices today, January 19th: Global market shows strong divergence, domestic prices remain stable.
Steel rebar prices in Shanghai edged up 0.6%, while iron ore prices in Singapore fell sharply. In Vietnam, construction steel prices remained stable across all three regions.
The global steel and raw materials market saw mixed developments on January 19th. While rebar prices in China edged slightly higher due to short-term expectations, iron ore prices faced significant downward pressure due to weak demand. In Vietnam, construction steel prices remained stable, with no new changes compared to previous sessions.
The global steel market is experiencing divergent trends.
On the Shanghai Futures Exchange, February rebar futures rose 0.6%, or 19 yuan, closing at 3,148 yuan per ton. Analysts believe this increase is a temporary market reaction, despite the fact that steel consumption in China remains low.
Conversely, iron ore prices in the Singapore market fell by approximately 2% last week. The downward pressure mainly stemmed from a nearly 2 million ton drop in molten pig iron production in China – a key indicator of iron ore demand – recently. This was due to many steel mills undergoing scheduled maintenance and construction activity slowing down due to seasonal factors.
Pressure from long-term supply
Besides weak demand, the prospect of a sharp increase in supply is also causing caution among investors. Two leading mining companies, BHP Group and Rio Tinto, have announced plans to cooperate in mining in the Pilbara region (Western Australia). Iron ore production from this area is expected to reach 200 million tonnes per year over the next decade, raising concerns about oversupply in the medium and long term.
The domestic steel market maintains stable prices.
Contrary to fluctuations on the international market, the domestic construction steel market remained stable on January 19th. Data from SteelOnline shows that major businesses maintained their listed prices across all three regions: North, Central, and South.
Below is a price list for construction steel from some major brands (unit: VND/kg):
| Area | Trademark | CB240 steel coil | D10 CB300 ribbed steel bar |
|---|---|---|---|
| North | Hoa Phat | 13,800 | 13,600 |
| North | Viet-Italian/Viet-German | 13,130 - 13,700 | 13,130 - 13,700 |
| Central region | Viet Duc | 13,950 | 13,600 |
| Southern | Hoa Phat | 13,530 - 13,800 | 13,130 - 13,600 |
| Southern | VAS | 13,530 - 13,800 | 13,130 - 13,600 |
In Central Vietnam, Viet Duc Steel recorded a higher price for CB240 steel coils than the general average, reaching approximately 13,950 VND/kg. However, overall, the price fluctuation range across the entire market remained stable, from 13,130 to under 14,000 VND/kg depending on the type and brand.
