Galvanized Steel Market in Vietnam: Current Trends and Outlook (Updated on July 7th, 2023)

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Introduction:

As of July 7th, 2023, the galvanized steel market in Vietnam reflects the ongoing price fluctuations and production challenges attributed to concerns over steel production restrictions in China. This article provides an updated overview of the current situation, focusing on the market trends and potential impacts.

Price Trends on Shanghai Exchange:

The price of steel on the Shanghai Exchange reached 3,767 Chinese yuan per ton as of July 7th, reflecting the price fluctuations in the market. However, determining a stable direction for iron ore prices remains challenging due to concerns over steel production restrictions in China. These uncertainties offset the optimism regarding additional stimulus measures aimed at supporting the country's post-COVID-19 economic recovery, as reported by Reuters.

Production Challenges in China:

Verbal notices regarding electricity usage restrictions have been received by several steel mills in Sichuan province, southwestern China, according to Mysteel, an industry data provider and consultant. These restrictions may limit their operations, following the example of Duong Son, a prominent steel production hub that has already implemented production cuts for July due to worsening air quality conditions.

Iron Ore Contracts and Analyst Outlook:

The iron ore contract SZZFQ3 for August delivery on the Singapore Exchange (SGX) remained relatively unchanged at $109.65 per ton, fluctuating between profit and loss.

On the Dalian Commodity Exchange (DCE) in China, the iron ore contract DCIOcv1 for September delivery concluded the session with a slight increase of over 1% at 829.5 Chinese yuan per ton (equivalent to $114.52 per ton).

Analysts from Sinosteel Futures emphasized that the steel production control measures "will lead to a significant decline in iron ore demand, with weak supply supporting prices amidst increased supply from Australia and Brazil."

Weather conditions in China may also pose challenges to steel production.

Ton Nam Kim - Nam Kim Steel:

Ton Nam Kim - Nam Kim Steel, a prominent company in the galvanized steel sector, continues to navigate the ever-changing market dynamics in Vietnam. With their commitment to delivering high-quality galvanized steel products, Ton Nam Kim - Nam Kim Steel plays a vital role in meeting the industry's demands. As market fluctuations and challenges persist, the company's resilience and adaptability position them as a reliable player in the galvanized steel market in Vietnam.

Conclusion:

As of July 7th, 2023, the galvanized steel market in Vietnam is characterized by ongoing price fluctuations and production challenges influenced by steel production restrictions in China. Stakeholders should closely monitor market developments to navigate these dynamic conditions successfully. Ton Nam Kim - Nam Kim Steel, with its commitment to quality and adaptability, remains a significant player in the galvanized steel sector in Vietnam, contributing to the industry's growth and meeting the market's demands.

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