The selling price of domestic construction steel was adjusted up in March by about 800-1,000 VND/kg since the end of February, currently at an average level of about 18,550-18,750 VND/kg depending on each product category and each business. specific domain.
According to the Vietnam Steel Association (VSA), many factors along with the conflict between Russia and Ukraine since the end of February have affected the selling price of construction steel in the domestic market. Factories adjust the selling price of finished steel to partially offset the production cost.
Factories increase the selling price of finished steel to partially offset the production cost, which leads to an increase in sales volume due to speculation by distributors.
Accordingly, the domestic price of construction steel was adjusted to increase in March by about 800-1,000 VND/kg since the end of February, currently at an average of 18,550-18,750 VND/kg depending on the type of product and each individual product. specific businesses and regions.
In March, the global steel raw material market continued the general upward trend of metal prices in the world. Domestic billet price increased by about 1,000 – 1,300 VND/kg, to 17,100 – 17,300 VND/kg at the end of March. Before that, domestic billet price in February also increased by 400 – 500 VND/kg, to 16,100 – 16,300 VND/kg.
In addition, the export price of hard coking coal at the Australian port on April 8 traded at 359.5 USD/ton FOB, a sharp decrease compared to the beginning of March. Meanwhile, the price of coking coal had The trend has increased continuously since the third quarter of 2021 and adjusted sharply in March.
Diễn biến giá nguyên liệu thép trong tháng quý I. (Nguồn: VSA)
Facing the complicated movements of steel production material prices in the first quarter, the domestic steel industry faced difficulties when steel prices increased rapidly at high levels, causing users in civil and construction industries to consider The calculation should have an effect on the demand for use..
However, in the first quarter, Vietnam’s economy recovered more and more clearly, with brighter colors thanks to the Government’s drastic restoration and opening of economic activities, the psychology of distributors taking advantage of the speculation. Before the price goes up to make a profit in the short term, steel mills increase the selling price but regulate the selling volume to a limited extent.
In the recently released steel stock outlook report, BSC Securities said that in 2022, domestic steel consumption will grow well based on increasing disbursement of public investment, focusing on infrastructure. floors, and civil construction activity recovers when the epidemic is under control.
Specifically, the National Assembly has approved an economic recovery support package worth VND 350,000 billion, of which VND 113,850 billion is allocated for infrastructure development, focusing on key projects such as the North – East Expressway. In the South East, Long Thanh airport, large logistics ports…, leading to an increase in iron and steel consumption demand.
BSC also forecasts that the average steel price in 2022 will adjust further, following the decline of iron ore prices, which account for 45%-50% of billet production costs.
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