Many experts forecast that in the coming time, along with the increase in raw material prices, the construction progress of public investment projects and real estate projects, steel prices may continue to stay high.
According to information from the Vietnam Steel Association (VSA), the price of raw materials and fuels for steel production increased again at a high level, causing steel prices to increase in recent years.
A report from VSA said that the export price of coking coal at the Australian port on February 10, 2022 traded at $391.75/ton FOB, a sharp increase of $55.75 compared to the beginning of January 2022. Coke prices tend to increase continuously since the third quarter of 2021, affecting the increase in steel production costs.
Along with that, the price of iron ore traded at 149.7 – 150.2 USD/ton CFR Tianjin port, China, an increase of about 24 USD/ton compared to the beginning of January 2022; The price of steel scrap imported from East Asia port was at $555/ton CFR East Asia on February 10, 2022, an increase of $40-45/ton compared to the beginning of January 2022.
The price of raw materials from iron ore, Coke coal, scrap steel increased and increased much after the Lunar New Year holiday (in China and ASEAN region) caused a sharp increase in billet prices.
The price of steel billet in Southeast Asia port transactions increased by 39-40 USD/ton and remained at 660 USD/ton at the end of January 2022; to February 10, 2022 at 696 USD/T CFR East Asia, an increase of about 70 USD/ton compared to the price of billet at the beginning of January 2022.
Domestically, domestic billet price in January 2022 increased by about 400-600 VND/kg, keeping the price at 14,800 – 15,800 VND/kg at the end of January 2021.
On the market, the price of construction steel is being sold at about 17,000 VND/kg (equivalent to 17 million VND/ton).
A representative of VSA said that factories adjusted the selling price of finished steel to partially offset production costs, which caused sales to increase due to speculation by distributors.
The demand for steel products can start from mid-February 2022 and the market establishes a new high price level. The level of competition between factories is increasingly fierce on selling prices.
The market outlook in the first quarter of 2022 may start with a new price level when the price of steel production materials continuously adjusts to increase, domestic demand has good signals.
According to Mr. Nguyen Van Sua, steel industry expert, in January 2022, the global steel raw material market continued the trend of rapid reversal.
Domestic construction steel selling price was adjusted to increase by about 200 VND/kg at the end of January 2022, and adjusted up by 300 VND/kg in mid-February 2022, keeping at an average level of about 16,600 – 17,200 VND/kg depending on the type of product and each enterprise and specific region.
In Directive 01, which has just been issued, the Prime Minister assigned the Ministry of Transport and relevant agencies and localities to further accelerate the investment preparation and investment decision on road construction projects. the East North – South Expressway in the 2021 – 2025 period; focus on speeding up the construction progress of the project to build a number of expressways on the north-south east route in the 2017-2020 period, the phase 1 of the Long Thanh International Airport Project. …
This will be the driving force behind growth in the steel industry this year. The price of steel products may also increase according to the price of production materials, Mr. Sua said.
According to VSA, in January 2022, construction steel production achieved good results compared to the previous month and the same period in 2021. Construction steel production in January 2022 reached more than 1.12 million tons, an increase 11.19% compared to December 2021 and equal to the same period in 2021. Consumption reached more than 1.05 million tons, an increase of 1.55% compared to the previous month and an increase of 27.8% over the same period in 2021. Steel exports in January reached nearly 232,000 tons, double the same period in 2021.
In fact, right from the beginning of the new year and during the Lunar New Year, many domestic enterprises still maintain large steel export activities through seaports.
With high demand for construction and investment, VSA forecasts, the domestic steel market will grow by 15-20% in 2022.
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