Hot rolled coil price has dropped to $ 485 / ton, the lowest level in many years in August 2020, causing US mills to reduce capacity. However, by September 2021, the price of hot rolled coil has increased by 4 times compared to August 2020 to $ 2,094 / ton thanks to the recovery demand.
According to page Yahoo Finance, the US steel industry is booming again in 2021 after suffering heavy losses from the COVID-19 pandemic, thanks to the strong recovery of domestic demand causing steel prices to skyrocket.
The SARS-CoV-2 virus affects steel demand in many industries such as construction and automobiles in 2020.
The devastation of the pandemic has forced US steel mills to reduce output. Production capacity at factories fell to multi-year lows in the first half of 2020.
Similarly, auto factories are also forced to reduce capacity, leading to a plunge in steel demand.
However, this country’s steel industry has rebounded strongly thanks to the increase in steel prices. Steel demand has recovered since the third quarter of 2020 with the return of industries such as automobiles and construction when the US government eased epidemic prevention measures.
Vietnam’s iron and steel exports to the US increased fourfold
According to the General Department of Customs, in the first eight months of the year, Vietnam’s iron and steel exports to the US and EU increased significantly compared to other markets. Specifically, exports to the EU reached 1.43 million tons, up 7.5 times, to the US reached 540,000 tons, up 4 times over the same period last year. The US is Vietnam’s third largest market for iron and steel after the EU and ASEAN, with a proportion of about 10%.
American steel companies recorded increased orders from the auto manufacturing sector. Besides, the demand for construction steel from public investment projects is still stable.
Hot rolled coil price has decreased to 440 USD/ton short (in the US 1 ton short, in English: short ton, equivalent to about 907 kg. Thus, 400 USD/ton short is equivalent to 485 USD/ton). The lowest in many years in August 2020 led US factories to reduce capacity.
However, prices gradually recovered as supply was tight while demand was high. By September 2021, the price of hot rolled coil has increased 4 times compared to August 2020 to $ 1,900 / short ton (equivalent to 2,094 USD / ton).