The 3rd week of May summary: HRC China fell but other origins soared, oil plunged then surged, ocean freight drives up fast

During the third week of May 2021, with the strong downtrend of Iron Ore from China, the price of finished steel was significantly affected. HRC and rebar fell for 3 consecutive sessions, while coated steel increased. Price was like chaos when many traders and stockists with position kept plunging price to release stock. This makes people believe that price will fall in the future.

During the third week of May 2021, with the strong downtrend of Iron Ore from China, the price of finished steel was significantly affected. HRC and rebar fell for 3 consecutive sessions, while coated steel increased. Price was like chaos when many traders and stockists with position kept plunging price to release stock. This makes people believe that price will fall in the future.

After oil price declined almost 3% due to new agreement between US and Iran about lifting sanctions on Iranian oil, banking and shipping sectors. However, by early this week, oil rises by 2 – 2.5% again buoyed by market expectations that fuel demand globally is rising with the re-opening of major economies in Europe and higher travel numbers in the United States.

From February to May 2021, the average monthly volume of bulk cargo from Vietnam to the EU and the US is over 100,000MT for each region and is expected to hit the peak from June 2021 to September 2021. When demand exceeds supply, whatever should happen will happen. It is predicted that bulk freight rates from July to September 2021 will soar sharply, even beyond expectations of all shippers. And the escalation of container freight also is not an exception due high serious shortage of empty container and huge pressure on vessel space.

After oil price declined almost 3% due to new agreement between US and Iran about lifting sanctions on Iranian oil, banking and shipping sectors. However, by early this week, oil rises by 2 – 2.5% again buoyed by market expectations that fuel demand globally is rising with the re-opening of major economies in Europe and higher travel numbers in the United States.

From February to May 2021, the average monthly volume of bulk cargo from Vietnam to the EU and the US is over 100,000MT for each region and is expected to hit the peak from June 2021 to September 2021. When demand exceeds supply, whatever should happen will happen. It is predicted that bulk freight rates from July to September 2021 will soar sharply, even beyond expectations of all shippers. And the escalation of container freight also is not an exception due high serious shortage of empty container and huge pressure on vessel space.