In the coming time, normal construction steel products will meet the steel demand for the domestic market. Hot rolled coil (HRC) will still be imported because the domestic supply can only meet more than 50% of the domestic demand.
According to the Ministry of Industry and Trade, in order to recover the economy due to the impact of the Covid-19 epidemic, governments around the world have issued many economic stimulus packages of tens of trillions of dollars, making the prices of primary materials of the world economy (oil prices, raw material prices, material transportation costs) increased.
After a period of unusual price fever (from December 2020), currently, the steel market has stabilized. The price of steel products has formed a new price level according to objective reality.
In the Vietnamese market, statistics show that the amount of raw materials for steel production of enterprises is mainly imported (except that Thai Nguyen Iron and Steel Joint Stock Company of Vietnam Steel Corporation uses ore raw materials). self-exploited iron with a low output of about 300,000 tons/year). The amount of iron ore and scrap steel for steel production in 2021 is expected to increase significantly compared to 2020.
Based on financial invoices provided by steel producers, the price of imported raw materials of steel factories increased. In which, iron ore price in May 2021 increased 2.4 times compared to February 2020 price (ore price increased from 86 USD/ton to 206 USD/ton) and increased by 32% compared to December 2020. ore price increased from 156 USD/ton to 206 USD/ton).
Scrap steel price in May 2021 increased by 1.9 times compared to February 2020 price (ore price increased from 270 USD/ton to 512 USD/ton) and increased 18% compared to December 2020 (ore price increased from 435 USD/ton to 512 USD/ton).
However, the price of iron ore mined at Thai Nguyen Iron and Steel Joint Stock Company is less volatile. Iron ore price in May 2021 compared to February 2020 only increased by 8%.
According to reports of steel manufacturers, the selling price of steel products in the first 5 months of 2021 increased compared to 2020 due to fluctuations in input material prices. However, the increase in product sales is still lower than the increase in input prices.
Specifically, the steel billet price in May 2021 increased by 62% compared to the price in February 2020 (from 9,433,697 VND/ton to 15,278,360 VND/ton) and increased 41% compared to December 2020 (from VND 10,800,000/ton to VND 15,278,360/ton).
As for construction steel prices, steel prices in May 2021 increased by 49% compared to February 2020 prices (from 11,340,608 VND/ton to 16,869,341 VND/ton) and increased by 30 compared to December 2020 % (from 12,944,499 VND/ton to 16,869,341 VND/ton).
For hot rolled coil (HRC) steel prices, the price of HRC steel in May 2021 increased by 94% compared to the price in February 2020 (from VND 9,000,000/ton to VND 17,500,000/ton) and increased compared to the previous month. 12/2020 is 48% (from 11,800,000 VND/ton to 17,500,000 VND/ton).
According to the reports of the units, in the first 5 months of 2021, steel consumption is stable and has a high growth rate, providing enough for the market’s demand for construction steel and galvanized steel products of all kinds. .
For export steel products, the Ministry of Industry and Trade further informed that Hoa Phat Group plans to reduce export steel billet output to serve domestic processing factories (expected to export 730,000 tons in 2021, down 44 % compared to 2020).
The situation of production, supply – demand of steel products in 2021 is considered by experts to continue to develop stably. Ordinary construction steel products meet enough steel demand for the domestic market and tend to grow slower than in the first 6 months of the year. Meanwhile, HRC steel products will still be imported because domestic supply can only meet more than 50% of domestic demand.
It is forecasted that by the end of 2021, the price of finished steel (traded in the Chinese market) will decrease to the price of 696.76 USD/ton; iron ore price 62% (delivered at Tianjin port, China) will decrease to 200 USD/ton.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
