On the domestic market, as of August 31, the domestic steel price had been adjusted down 17 times in a row since the beginning of the year, now below VND15 million ($630) per tonne and creating a new price base, according to the Mercantile Exchange of Vietnam (MXV).
On the metal market price list at the close on August 30, the bright spot belonged to the iron ore market as iron price recovered around 2 per cent fetching $114.4 per tonne.
As iron and steel is deemed a particularly sensitive commodity in terms of the Chinese government’s stimulus, the prospect of China being about to issue a series of new policies has given a firm lift to iron ore prices.
According to MXV, this data is of particular interest to the market as it is an indicator of either a contraction or expansion in China's manufacturing activity, which uses a large volume of base metals as input materials.
In addition, in the face of China's economy weakening, Chinese authorities are trying to revive the economy. Therefore, iron ore and steel prices may receive support if China continues to issue economic support policies next week.
Not only the Chinese market, the rising prospect of iron ore consumption, the main input material in the steel industry in Japan, the world's third-largest steel producer, is also a supportive factor for ore prices to maintain its upward momentum.
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