Steel prices continue to rise sharply

Steel price continued to increase causing many investors to rebalance costs. The Vietnam Steel Association said that steel prices increased due to input factors such as coking coal, scrap steel, etc., all increased sharply in the world market.

Producing construction steel products at a steel company. (Photo: VNA)

From the beginning of March until now, steel companies have adjusted prices many times. Most recently, steel price of Hoa Phat Group has announced an increase of 600,000 VND/ton with construction rebar and coil. The reason is that the price of steel billet and input materials increased and this group decided to increase the selling price of products.

Mr. Ngo Khanh, steel dealer in Hanoi said, with such an increase, the price of steel sold to the market has touched 21 million VND/ton. Although the price of steel increased, but the stores could not take more goods in large quantities. In the coming time, it is expected that steel prices may continue to adjust.

Steel prices increased sharply and continuously, causing many construction projects to adjust their investment capital. Mr. Nguyen Cong Tu, who built a house in Thinh Liet – Hoang Mai said that with such a rapid increase in steel prices, his 3-storey house is being costed. His project needs more than 20 tons of steel to complete, just in the past 1 month, the price of steel alone has increased, causing the cost to increase to more than 30 million dong, not to mention cement, sand and gravel…

According to information from the Vietnam Steel Association (VSA), the price of coking coal for export at the Australian port traded at 627 USD/ton, a sharp increase of 235 USD compared to the beginning of February. Coke prices have been on a continuous upward trend since 2021 which has affected the cost of steel production.

Price of iron ore grade (62% Fe) traded at 162-162.50 USD/ton CFR Tianjin port, China, an increase of about 12 USD/ton compared to the beginning of February 2022

HRC price is at 890 USD/ton CFR Dong A port, an increase of about 90 USD/ton compared to the transaction price in early February 2022. In general, the world hot rolled steel (HRC) market fluctuates, making it difficult for the domestic HRC market because flat steel producers (CRC, galvanized steel, steel pipes…) use HRC as raw materials. manufacturing.

Many steel industry experts believe that the price of raw materials for steel production, along with geopolitical tensions between Russia and Ukraine, cannot be stabilized immediately, so steel prices will not be able to return to a lower price level.

“The market is in a state of supply disruption and sudden price increases. However, when the world situation returns to stability and the price of raw materials decreases, steel prices will cool down,” said Mr. Nguyen Van. Sua, a steel industry expert said.

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