Construction steel prices have increased twice in a row since the beginning of 2022, ranging from 16,600 to 17,200 VND/kg. VSA believes that this item can establish a new price level in the first quarter thanks to the motivation of public investment and high raw material prices.
According to the Vietnam Steel Association, the domestic construction steel price continuously increased at the end of January and mid-February, about 200 VND/kg and 300 VND/kg respectively.
Up to this point, the price of construction steel is fluctuating from 16,600 to 17,200 VND/kg depending on each enterprise, product category and specific region.
VSA believes that construction steel can establish a new price level in the first quarter when the price of steel materials continuously increases and domestic demand has many good signals.
Specifically, the price of export coking coal at the Australian port on February 10 traded at $391.75/ton FOB, a sharp increase of $55.75 compared to the beginning of January. Coke price tends to increase continuously. since the third quarter of 2021 affects the increased cost of steel production.
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. The price of imported scrap steel at the port. East Asia was at $555/ton CFR East Asia on February 10 increased by $40-45/ton compared to the beginning of January.
(Source: VSA)
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 the 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 kept at 660 USD/ton at the end of January. As of February 10, the price of billet fluctuated at 696 USD/ton CFR East Asia, an increase of about approx. 70 USD/ton compared to the price of steel billet at the beginning of January.
Domestically, the domestic price of steel billet in January increased by about 400-600 VND/kg, keeping the price at 14,800 – 15,800 VND/kg by the end of January 2021.
In another aspect, construction steel prices are being driven by public investment projects in 2022.
In Directive 01, which has just been issued, the Prime Minister assigned the Ministry of Transport and localities to speed up the investment and construction progress of the East North-South Expressway project in the 2021-2025 period.
At the same time, speed up the construction progress of the project to build a number of expressway sections on the East North-South route in the period 2017-2020, and the phase 1 of the Long Thanh International Airport project.
With increasing demand for construction and investment, VSA forecasts that the domestic steel market will grow well in 2022.
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
