From the end of 2020 to the first months of 2021, the domestic steel price continuously increased, forcing the ministries and sectors to step in to stabilize, then the market gradually cooled down.
However, recently, steel prices continued to trend up. Only from October 18 to October 28, 2021, domestic steel enterprises had two adjustments, with a total increase of 1,070 VND/kg - 1,310 VND/kg depending on product type and brand.
Explaining the cause of the increase in steel prices, the Vietnam Steel Association (VSA) said it was due to the influence of the world market of steel materials and products.
The global price of steel materials in 9 months of 2021 has been complicated, the price of raw materials for steel production has continuously increased since the end of 2020, in which the price of iron ore in May 2021 increased by 2.6 times. scrap price increased 2.5 times compared to the same period in 2020.
After that, the prices of the above materials were adjusted down slightly in the second and third quarters. Specifically, on October 8, 2021, iron ore prices traded at 124.8-125.3 USD/ton CFR Tianjin port (China), down about 8 USD/ton compared to September 8, 2021 and about 85 USD/ton compared to the highest price recorded in early May 2021 (approximately 210-212 USD/ton) ton). Hot rolled coil price is at 860 USD/ton, CFR Dong A port, down about 10 USD/ton compared to the transaction price in early September 2021.
However, scrap steel price, after decreasing in the third quarter, adjusted up again. Accordingly, the price of scrap steel of grade HMS ½ 80:20 imported to East Asia port was at USD 516/ton CFR East Asia on October 8, 2021. This price increased by 33 USD/ton compared to the beginning of September 2021.
Besides, the price of coking coal for export at the Australian port on October 8, 2021 traded at about USD 332.5/ton FOB, a sharp increase of USD 32.5 compared to the beginning of September 2021.
According to Vietcombank Securities Company (VCBS), the price of coking coal has continuously increased since the beginning of the year due to the strong increase in energy demand while the economy recovered.
Specifically, coal prices increased sharply in September 2021 mainly due to an increase in energy demand that exceeded forecasts along with China's restriction on coal imports from Australia as well as an increase in domestic coal production that was not enough to meet the demand. Domestic demand. In the long term, coal prices will gradually cool down but will still be at a higher level than before.
At the present time, the continued increase of raw materials for steel production may put pressure on construction steel prices in the last two months of the year.
Especially, this is also the time when the demand for construction steel increases because the demand for construction and home repair of ordinary people increases sharply in the last months of the year as well as large real estate projects are deployed again. back after a long break.
Commenting on steel prices in the coming time, VSA believes that the global economy is recovering, which means that the world's demand for steel will increase, while the forecast of the Organization for Economic Co-operation and Development (OECD) and All international organizations have confirmed that this year's global steel capacity cannot recover as before the pandemic.
That means steel prices will likely increase further. In addition, the current increase in steel prices is also affected by high transportation costs and lack of shipping containers.
Not to mention, although the production capacity of steel products (construction steel, pipe steel, galvanized sheet) of Vietnam's steel industry has met the domestic market demand, raw materials (iron ore, steel scrap), Regular fuel and consumable materials (coal, coke, electrodes, rolling pins, refractory materials...), backup equipment for steel production are mostly imported, so Vietnam's steel market bears the expense. distributed by the global market.
Therefore, the steel market will continue to be complicated and unpredictable, the prices of raw materials and finished steel products in the world will have many fluctuations, possibly setting a new price level in the world market. and domestic.
