The price of rebar for October delivery on the Shanghai Commodity Futures Exchange continued to decrease by 6% to 5,640 yuan / tonne (US$875.03 / ton) at 10:30 a.m. on May 14 (Hanoi time).

Hot rolled coil price also decreased by the same level to 6,135 yuan/ton.

Steel prices fell mainly because iron ore prices started plunging yesterday.

On the Dalian Commodity Exchange, the price of iron ore for September delivery continued to fall 9.4% to 1,149 yuan/ton at the same time. In yesterday session, the price sometimes fell 9.5% to below the level of 1,200 USD/ton. The price of this raw material could drop by 5.8% this whole week.

Spot prices of 62% FE ore to China also fell $12 to $220.5 per tonne on May 13, according to SteelHomes data.

In addition, prices of other raw materials for steel production also decreased. Coke and coke ore prices on DCE fell 5.9% and 6.5%, respectively.

Steel and iron ore markets simultaneously plunged after the government of Tangshan city, China’s top steel-producing region, warned mills to maintain market order. The city government said it would consider illegal practices and suspend business for factories found to be manipulating market prices, spreading rumors or hoarding goods for profit amid the pandemic. steel prices go up.