The price of each ton of construction steel increased by VND250,000-300,000 compared to before Tet, exceeding VND17 million.
Thai Nguyen Iron and Steel Joint Stock Company has just announced an increase in construction steel prices. Accordingly, the price of each ton of CB240 coil steel applied from February 12 is VND17.3 million if paid immediately and nearly VND17.4 million if paid late, with a guarantee.
The price of steel excluding VAT of all types also increased to VND17.3-17.6 million per ton, depending on the type and the speed of payment. In general, the new price increased by VND250,000-350,000 per ton compared to the end of January and the first week of February.
Similarly, Hoa Phat Hung Yen Steel Company, Viet Duc Steel or Vinausteel… also adjusted the selling price of construction coil steel from mid-February.
Prices quoted by some dealers on February 17 showed that the price of Hoa Phat D10 steel was commonly at VND17.15 million per ton; D12 rolled steel also increased to VND16.75 million. The new price increased by VND600,000-800,000 per ton compared to two weeks ago.
The current price is about VND700,000-800,000 per ton from the peak of VND18.3 million per ton in May last year. But according to dealers, steel prices are likely to increase further. “We predict that there will be at least 2-3 more price increases in the near future, with a total increase of about VND1 million per ton,” said Mr. Ngoc, owner of a steel dealer in Cu Khe (Ha Dong).
Maybank Kim Eng Securities Company (MBKE) in a recent report assessed that the growth of the domestic steel industry could be 15-20% this year. This prospect comes from the “supports” in the infrastructure investment package worth VND150,000 billion, plus the existing VND530,000 billion, which will help public spending increase by 38%. In addition, adjustments in the construction, investment and housing laws… will remove bottlenecks that are hindering the development of the real estate and housing industry.
Regarding prices, MBKE believes that steel prices will fluctuate between supply – demand and input material prices from the world market.
The increase in domestic steel prices is influenced by the world market, especially China. Two days ago, steel prices in this largest importing and exporting country increased by nearly 6%, reaching nearly 756 USD per ton, the highest in the past 5 months.
In fact, the price of raw materials (iron ore, steel billets, coke, etc.) on the world market has increased. These raw materials account for about 70-80% of the cost of domestically produced steel. At the same time, a series of civil works restarted after a period of suspension due to the epidemic, especially in the Southern region, causing the demand for this product to skyrocket.
Currently, spot steel billet prices in the Southeast Asian market have increased by 5-7 USD per ton compared to the end of January, at 662-671 USD per ton. HRC hot-rolled coils have also increased sharply on the Shanghai Futures Exchange (China), about 2% more expensive than the end of January, about 505-507 USD per ton.
Coking coal prices in the Asia-Pacific region have increased to a record high due to scarce supply and strong demand for reserves from countries in the context of economic opening and recovery. Coking coal prices have increased to nearly 410 USD per ton, FOB prices in Australia are nearly 40 USD more expensive, and in China, the price of this raw material has also increased by about 27 USD, to 403 USD per ton.
After a sharp increase, the price of 62% iron ore imported into China fell 10% to approximately $135 a ton on February 15 following the Chinese government’s announcement to stabilize prices. However, iron ore prices have increased 60% since November last year despite efforts to stabilize the market. Therefore, commodity strategists said that iron ore futures prices will continue to be under pressure.
